AR 2020 Glencore

RESPONSIBLY
SOURCING THE
COMMODITIES
THAT ADVANCE
EVERYDAY LIFE
Annual Report 2020

OUR PURPOSE OUR STRATEGY
Responsibly sourcing the To sustainably grow total shareholder
commodities that advance returns while maintaining a strong
everyday life. investment grade rating and acting
as a responsible operator.
Read more
glencore.com
Page 10
LIVING OUR VALUES

Our values reflect our purpose, our priorities and the beliefs by which
we conduct ourselves. They define what it means to work at Glencore,
regardless of location or role. They are the heart of our culture and the
way we do business.
SAFETY INTEGRITY SIMPLICITY
We never compromise on safety. We have the courage to do what’s We work efficiently and focus
We look out for one another and right, even when it’s hard. We do on what’s important. We avoid
stop work if it’s not safe what we say and treat each other unnecessary complexity and look
fairly and with respect for simple, pragmatic solutions
RESPONSIBILITY OPENNESS ENTREPRENEURIALISM
We take responsibility for our actions. We’re honest and straightforward when We encourage new ideas and
We talk and listen to others to we communicate. We push ourselves quickly adapt to change. We’re
understand what they expect from us. to improve by sharing information and always looking for new opportunities
We work to improve our commercial, encouraging dialogue and feedback to create value and find better and
social and environmental performance safer ways of working
STORIES FROM OUR YEAR

Read about the stories that show who we are
Read how we’re Read about our Read about our journey
working to transform recycling business to net zero emissions
artisanal mining in the on page 50 on page 16
DRC on page 14
OUR BUSINESS Business model
Page 8
AT A GLANCE Sustainability
Page 32
One of the world’s largest natural resource companies
6
continents
35
countries
c.145,000 >40
employees and contractors offices
Map key
Head office
Industrial assets
Marketing office/other
Integrating sustainability throughout our business

CO2e Scope 1 CO2 Scope 2 CO2e Scope 3 Targeted reduction in
million tonnes million tonnes million tonnes total emissions
15.0
2019: 18.3
9.3
2019: 11.0
271
2019: 343
40%
on 2019 levels by 2035
Our Financial Highlights

Adjusted EBITDA◊ Net (loss)/income Cash generated by Net purchase and sale
US$ million attributable to operating activities before of property, plant and
equity holders working capital changes equipment◊
US$ million US$ million US$ million
$11.6bn ($1.9)bn $8.6bn $3.9bn

15,767 3,408 13,210 4,899 4,966
11,601 11,560 10,346 3,921
8,568
(404) (1,903)
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
CONTENTS
Strategic Report
Chairman’s introduction 1
Chief Executive officer’s review 2
Investment case 5
Two business segments Our market drivers 6
Business model 8
Our strategy for a sustainable future 10
Climate change 16
Industrial Marketing Key performance indicators 22
Section 172 statement
and stakeholder engagement 24
Our people 27
Sustainability 32
Adjusted EBITDA◊ Adjusted EBITDA◊
Ethics and compliance 38
Industrial 2020 Marketing 2020
Financial review 44
Non-Financial Information Statement 49
Our Marketing business 52
Our Industrial business 60
Risk management 70
Corporate Governance
Chairman’s governance statement 86
Directors and officers 88
● Metal ● Metal Corporate governance report 90
● Energy ● Energy
ECC report 95
$7.8bn $3.7bn
HSEC report 96
Audit committee report 97
2019: $9.0bn 2019: $2.6bn Nomination committee report 99
Directors’ remuneration report 100
Directors’ report 112
Total Adjusted EBITDA 2020◊
$11.6bn
Financial statements
Independent Auditor’s Report
to the members of Glencore plc 118
2019: $11.6bn
Consolidated statement of income 131
Consolidated statement
of comprehensive income 132
of financial position 133
Consolidated statement of cash flows 134
Lost time injury Total recordable injury Consolidated statement
frequency rate frequency rate
of changes of equity 136
per million hours worked per million hours worked
Notes to the financial statements 137
0.94
2019: 0.99
2.65
2019: 2.86
Additional information
Alternative performance measures 219
Other reconciliations 226
Production by quarter –
Q4 2019 to Q4 2020 228
Total borrowings Net debt◊ Resources and reserves 235
US$ million US$ million Shareholder information 243
$37.5bn $15.8bn ◊ Alternative performance measures

Adjusted measures referred to as Alternative
performance measures (APMs) which are not defined
37,043 37,479 17,556
34,994 15,844 or specified under the requirements of International
14,710
Financial Reporting Standards; refer to APMs section
1.50x
on page 219 for definitions, explanation of use and
1.00x reconciliations and note 2 of the financial statements
0.50x for reconciliation of Adjusted EBIT/EBITDA.
0.00x
2018 2019 2020 2018 2019 2020
Read more
Net debt
Net debt to Adjusted
Page 219
EBITDA ratio
Strategic report Governance Financial statements Additional information
CHAIRMAN’S
INTRODUCTION
Anthony Hayward
Chairman
DEAR SHAREHOLDERS After nine years’ service as a Director we were very sorry to
I introduced last year’s annual report with a discussion on see Lenny Fischer retire at year end, but we were delighted
the need for a strong and clear purpose, values and strategy to welcome Cynthia Carroll as a new Director (see page 86).
underpinned by a robust and aligned culture. These are the Culture: the Board is determined to ensure that Glencore is, and
essential requirements for a sustainable business. 2020 has is seen to be, a responsible and ethical company with a positive
provided a perfect example of this. culture. As well as overseeing and supporting the considerable
From a positive outlook at the beginning of the year, Covid-19 ongoing work on ethics and compliance, including the rollout
emerged as an unprecedented challenge for the world. At of the Purpose and Values campaign, the Board has sought
Glencore, we moved quickly to adapt our business and protect to increase direct engagement with our workforce through
and support our people and communities. This involved a range virtual meetings and workforce surveys. Our work last year is
of measures across our businesses depending on the incidence summarised on pages 24 to 26 and 29. Stakeholders can expect
of Covid-19 and the regulations and expectations of governments, to see more from us on this in the future.
employees and communities that host our operations. Investigations: the Board, through its Investigations Committee,
Demand for our commodities and prices fell rapidly early in is continuing to manage the Company’s response to the
the year. This required difficult decisions around continuing government investigations (see page 212) and the Company
production at uneconomic operations and the collateral impact continues to fully cooperate with the various authorities. The timing
on employees and nearby communities. At a group level the and outcome of the various investigations remain uncertain.
rapid shift in markets led us to suspend our proposed distribution Climate Change: we also announced our ambition to be a leader
to shareholders to protect our capital structure and accelerate in enabling the decarbonisation of energy usage. In doing so,
a reduction of Net debt back to within our $10-$16bn target range we recognise our responsibility to contribute to the global effort
which was successfully achieved ($15.8bn) by year end. Managing to achieve the goals of the Paris Agreement by decarbonising
the impacts of Covid-19 on the effective operation of our our own operational footprint. Unique amongst our peers, we
governance and control mechanisms was also critical. We had to have announced our commitment to reduce our total emissions
ensure that our reporting and assurance procedures – whether footprint – Scope 1, 2 and 3 – by 40% by 2035 on 2019 levels and
across human resources, accounting, compliance or elsewhere – our ambition of achieving a net zero total emissions footprint
would continue to operate robustly through these times of by 2050, thereby putting us on a trajectory aligned with the
exceptional stress and often remote working requirements. Paris Agreement.
The combination of empowered business leaders and central With the transition of leadership from Ivan to Gary, we will
governance and support meant that our businesses were able complete the final part of the generational shift to a new
to react in the most appropriate way for their situation while executive team. The Board believes that we have exceptional new
adhering to our required Group standards. management in place to continue to drive our business forward.
In spite of this challenging backdrop, we were able to ensure Global society is facing the challenge of meeting the increasing
that our strategic priorities were progressed, including: energy needs of a growing population, while radically reducing
Succession: Ivan Glasenberg’s retirement during the first half its carbon footprint. We believe that we have an important role
of this year will complete the succession plan for the senior to play in this endeavour and that by implementing our strategy
business leadership team. To have your CEO and principal we will responsibly source the commodities that advance
senior business leaders retire within a period of two and a half everyday life for the benefit of the world as a whole.
years would normally be considered a material risk for business
continuity. However, it is a testament to Ivan and his former
partners that they have managed a seamless succession to
the next generation of leaders, whom I am confident have the
abilities to lead the Company into the world of tomorrow.
Our CEO designate, Gary Nagle, has been with Glencore for more
than 20 years. He understands the unique aspects of this business Anthony Hayward
and culture and I have every confidence he will build on the Chairman
strong foundation that he inherits. 10 March 2021
Glencore Annual Report 2020 1

CHIEF EXECUTIVE
OFFICER’S REVIEW
Resilient performance amid unprecedented
challenges for the global economy
Ivan Glasenberg
Chief Executive Officer
A CHALLENGING TIME FOR THE WORLD In line with the 1.5-degree Celsius (ºC) more ambitious scenarios
The Covid-19 pandemic is an extraordinary challenge, impacting set out by the IPCC, we target a 40% reduction of our total
colleagues, our families, local communities and society at large. As (Scope 1, 2 and 3) emissions by 2035 on 2019 levels. Post 2035,
a responsible operator, our top priority is to protect the safety and our ambition is to achieve, with a supportive policy environment,
health of our people and the communities that host our businesses. net zero total emissions by 2050.
Although some of our industrial assets were required to Meeting everyday needs for affordable and reliable energy while
temporarily suspend operations during the year in line with decarbonising the economy is a key global challenge. Our
national and regional guidance, or where our risk assessment industry will need to significantly increase the supply of various
determined it was appropriate to do so, the majority of our assets raw materials required to meet the projected acceleration in
continued to operate relatively normally after implementation of demand for such transition commodities in order to electrify
appropriate precautionary measures. Across our industry, the and / or decarbonise existing fossil-fuel based energy demand.
impacts were most notable in Peru, South Africa and Colombia, Our modelling indicates that annual average mine supply growth
while Australia and Canada were relatively unaffected. The in several key metals will need to double (in units of supply growth)
cumulative impacts of mine supply disruption helped to offset over the coming decades under a Rapid Transition pathway scenario.
the initial demand shock from rapid lockdowns and the The majority of our earnings comes from the metals and minerals
corresponding slowdown in global economic activity. that enable the transition to a low-carbon economy. We are one of
While demand remained challenging in many key global the largest global producers of copper, nickel, zinc, vanadium and
economies, China’s rapid recovery, combined with material global cobalt and will continue to prioritise investment into these
central bank and governmental fiscal support, improved supply/ commodities. In addition, our recycling centres and metallurgical
demand fundamentals and started to generate favourable sector assets play a fundamental role in the circular economy by
sentiment and price momentum. reducing new metal consumption and waste generation.
Average price performances for our key metals commodities’ MEETING SOCIETY’S ENERGY NEEDS AS IT
benchmarks was largely flat to slightly lower year-on-year, PROGRESSES THROUGH THE TRANSITION
although this outcome reflects two very different halves, from
recessionary pricing conditions in March/April to multi-year The world currently depends on fossil fuels (coal, natural gas and
highs towards the end of the year. Coal pricing benchmarks oil) for around 80% of its primary energy demand. Coal currently
underperformed, finishing 2020 c.10-30% below 2019 averages, accounts for about 25% of global energy use, and while this will
under pressure from reduced economic activity and trade decline over time, it continues to make some contribution in all
tensions, although prices also materially improved into year-end. plausible climate change scenarios to 2050.
For many countries, an affordable, secure energy source is key to
PATHWAY TO NET ZERO their socio-economic and industrial development, being the
A clear emerging force, particularly over the last twelve to primary pathway for populations to develop key infrastructure
eighteen months, is the growing global momentum and and achieve economic growth and higher standards of living.
increasing consensus around achieving the goals of the Paris Our thermal coal business represents less than 5% of our revenues
agreement and targeting net zero global carbon emissions. and is envisaged to be in the region of 10-15% of our EBITDA in the
Europe and more than 110 countries have announced ambitions medium term (was 8% in 2020) and decline towards zero over the
to achieve carbon neutrality by 2050, supported more recently longer term. Future demand for coal through the transition
by China’s plans to target net zero emissions by 2060. underway will be a key determinant in the continued operation
We recognise our responsibility in contributing to the global of our mines.
effort to achieve the goals of the Paris Agreement through Selling our coal mines does not remove their associated
decarbonisation of our own operational emissions footprint. emissions. While there is demand for coal, and it is economic to
However, we believe our contribution should take a holistic do so, we will continue to operate our mines until they reach the
approach and consider our commitments and ambition through end of their lives. Through responsible stewardship of these assets
the lens of our total emissions footprint. and a commitment to a managed decline of our coal portfolio,
including maintaining a focus on our high-quality coal assets in
Australia, we will deliver on our ambition to reduce our total
2 Glencore Annual Report 2020

We are one of
the largest global
producers of
copper, nickel,
zinc, vanadium
and cobalt and will
continue to prioritise
investment into
these commodities.
emissions in line with the goals of the Paris Agreement. An however, increased modestly by 3% to $35.4 billion due to higher
example of our actions is the recent announcement to commence carried inventories, on account of the generally materially higher
the process to relinquish Prodeco’s mining licenses in Colombia. base metal prices at 31 December 2020 compared to the start
Glencore’s CO2e emissions reduction commitments make us of the year. We enter 2021 with strong earnings momentum,
unique amongst our peers with a medium-term Paris aligned noting c. $7.2 billion of illustrative annualised free cash flow
total CO2e emissions reduction target of 40% and a 2050 net zero generation at end of January 2021 spot prices, from c.$16.0 billion
ambition for Scope 1+2+3. All decarbonisation scenarios that we of Adjusted EBITDA.
have modelled are net positive for Glencore and our climate We continue to target a strong BBB/Baa credit rating and plan to
commitments confirm our intention to be part of the solution. reduce Net debt below the middle of our target range this year,
with a medium-term target to the lower end of the range, along
2020 FINANCIAL SCORECARD
with Net debt/Adjusted EBITDA closer to c.1x.
Our adaptable and resilient business model, containing many
countercyclical elements, allowed the Group to quickly adjust to the CORPORATE GOVERNANCE AND SUSTAINABILITY
challenges of Covid-19. Measures to protect cash flows, from capex At Glencore, we are committed to operating in a responsible
cuts to cost efficiencies, helped offset a material portion of the manner across all aspects of our business. Last year we concluded
impact of lower prices in the first half and positioned the business an extensive process to revisit and refine the values that define us.
well for the second half commodity price recovery, such that
The values of Safety, Integrity, Openness, Responsibility, Simplicity
Adjusted EBITDA of $11.6 billion was flat year-on-year. Net income,
and Entrepreneurialism reflect our Purpose, our priorities and the
before significant items, increased 2% to $2.5 billion, while
beliefs by which we conduct ourselves. They define what it means
significant items resulted in a Net loss attributable to equity holders
to work at Glencore, regardless of location or role and they are at
of $1.9 billion, mainly due to impairment charges related to Mopani
the heart of our culture and the way we do business.
copper in Zambia and our Colombian coal and African oil portfolio.
We also uphold the dignity, fundamental freedoms and human
In our Marketing business, supportive market conditions
rights of our employees, contractors and the communities in
produced an outstanding Adjusted EBIT result of $3.3 billion,
which we live and work, as well as others affected by our activities.
reflecting particularly strong results from oil, in conjunction with
We are committed to working in line with the United Nations
a vastly improved metals and see-through Viterra agriculture
Universal Declaration on Human Rights and the UN Guiding
performance. We maintain our long-term Marketing Adjusted
Principles on Business and Human Rights. In 2020, we joined the
EBIT guidance range of $2.2 to $3.2 billion.
Fair Cobalt Alliance, to help positively transform artisanal mining
Industrial Adjusted EBITDA of $7.8 billion was 13% lower compared to in the DRC and work towards eliminating child and forced labour,
2019, primarily reflecting weaker coal and oil prices and to a lesser as well as other dangerous practices.
extent, lower year-on-year production volumes, mainly Covid driven,
The safety and security of our workforce and the communities
relating to periods of stopped or reduced work in many countries
living around our assets are a priority recognised across our
and various market-related coal supply reductions. A notable
operational activities. While we have taken far-reaching actions
improvement in 2020 was seen at our Katanga copper/cobalt asset
to address the underlying issues that led to the tragic loss of eight
in the DRC, where operational improvements and higher volumes
lives at Glencore’s managed operations in 2020, this performance
generated a material turnaround in earnings, with African Copper
remains unacceptable and we are implementing an enhanced
Adjusted EBITDA of $712 million compared to a loss of $349 million
fatality reduction programme with the relaunch of “SafeWork”
in 2019. We expect further throughput and optimisation of mining
in 2021 to help drive the necessary step-change in performance.
and processing to provide even higher margins in 2021. We also
We remain determined to be a fatality-free business.
finalised an agreement in January this year to sell our controlling
interest in Mopani to Zambia’s ZCCM, with completion expected We are very pleased to have appointed Cynthia Carroll to the
in the second quarter of 2021, subject to various approvals Board as an independent Non-Executive Director on 2 February
2021. Cynthia has over 30 years of experience in the resource sector
Aided by the strong second half performance, Net debt reduced
and her experience and insights will be of great benefit to us.
during the year by $1.7 billion to $15.8 billion. Excluding IFRS 16
Cynthia has been appointed to the HSEC board committee.
related marketing leases, Net debt finished the year at $15.2 billion,
back inside our $10 to $16 billion target range. Net funding,

CHIEF EXECUTIVE OFFICER’S REVIEW
continued
SHAREHOLDER RETURNS LOOKING AHEAD

Owing to the uncertainty resulting from the Covid pandemic and After almost 40 years in the business and 20 years as CEO, the
to support the Group’s overall financial position during 2020, the time has come for me to retire and hand over to my successor,
Board elected not to pay any distributions in 2020. Gary Nagle. This transition will occur through the first half of 2021.
Having now reduced Net debt to $15.2 billion, excluding Marketing I have worked closely with Gary over the last 20 years and the
leases at period end (within our $10 to $16 billion target range), Board and I have every confidence that he will continue to drive
the Board is pleased to propose to shareholders a 2021 base our business forward with the enduring principles of dedication
distribution of $0.12 per share (c.$1.6 billion), comprising the and commitment that have contributed to its success to date.
$1 billion base attributable to Marketing plus 25% of 2020 Industrial Gary’s appointment largely concludes completion of a seamless
asset attributable free cash flow, payable in two equal instalments senior management transition to Glencore’s next generation of
in 2021. leadership. All senior management positions have been promoted
As noted above, we have a 2021 priority to ensure additional from within the business, demonstrating the strength in depth
deleveraging below the middle of the c.$10–16 billion guidance across the Group.
range (excluding Marketing lease liabilities) and targeting the Glencore has been a feature of the global commodities industry
lower end of the range in the medium term, including seeing for nearly half a century, growing from a physical trader of
the Net debt/Adjusted EBITDA ratio moving closer to 1x. Given metals, minerals and oil, into one of the world’s largest and most
Glencore’s current strong levels of operating cash flow (evidenced integrated natural resource companies. Today, the business, with
by the c. $7.2 billion of illustrative annualised free cash flow its portfolio of commodities and activities, is uniquely positioned
generation at end of January 2021 spot prices), these targets are for the expected resource needs of the future. In remaining
well on track to be met. Reflecting these objectives, the next six focussed on creating sustainable long-term value for all
months’ performance and prevailing market conditions and stakeholders while operating in a responsible manner, we are
outlook at the time, the Board would consider special 2021 “top-up” ready to support the transition to a low-carbon economy and
shareholder distributions, alongside its interim results in August. realise our ambition of achieving net-zero by 2050.
Subject to an internal assessment of appropriate equity trading
ranges for Glencore, cash distributions will generally be preferred
over buybacks given the inherent cyclical nature and volatility of
commodity prices.
Ivan Glasenberg
10 March 2021

INVESTMENT CASE
Our unique portfolio enables the transition to a low
carbon economy. As a CO2e total emissions reduction
leader, our strategy is Paris aligned across key milestone
dates, with the ambition of achieving net zero by 2050
Strong Well-capitalised,
A major supplier
diversification low-cost, high return
of energy and
by commodity, assets to facilitate the
mobility transition
geography transition to a low
materials
and activity carbon economy
• Fully integrated from • Future demand patterns are likely to • Our overall metals’ asset
extraction to customer favour the commodities that facilitate portfolio is low-cost and long-life,
• Presence in over 35 countries the decarbonisation of energy usage supporting the transition to a low
• Responsibly producing • We are a major producer of the carbon economy
and marketing more than commodities (copper, cobalt, • Our high-quality coal portfolio
60 commodities nickel and vanadium) that currently is expected to generate healthy
• Diversified across multiple underpin the infrastructure and levels of cashflow as production
suppliers and customers battery chemistry likely to power reduces over time, in line with our
electric vehicles and energy decarbonisation commitments
storage systems
Be a
A unique decarbonisation Significant cash
marketing business leader while flow generation
that extracts value meeting everyday and shareholder
across the entire metals demand distribution
supply chain and today’s potential
energy needs
• As a marketer of commodities, we • Leading climate strategy: targeting • Adjusted EBITDA◊ $11.6 billion in
can extract value from the full-range a 40% reduction in total CO2e 2020, flat year-on-year
of physical arbitrage opportunities emissions by 2035, and 2050 net zero • Net debt/adjusted EBITDA◊ of 1.37x
• We create value through economies ambition for Scope 1+2+3 emissions • Base distribution policy represents
of scale, our extensive (including third • Responsible stewardship of a fixed payout of prior year cash flow,
parties) supply base, our logistics, risk declining coal business over time comprising $1 billion from Marketing
management and working capital as industry decarbonises and 25% of Industrial asset
financing capabilities • Decarbonisation pathways require attributable free cash flows
our transition enabling commodities • “Top-up” capital returns, as
appropriate, from accumulation
of balance sheet surplus capital

OUR MARKET DRIVERS
We are dependent upon the supply, demand and pricing for our commodities
Key Market drivers
Efforts to contain • Momentum to decarbonise the global economy is gathering

a global pace as nations increasingly coordinate efforts aimed at
temperature minimising greenhouse gas emissions, including the targeting
rise will impact of net zero emissions by 2050
Net zero fossil fuel
emissions by demand The Paris Agreement aims to keep the global temperature rise
this century to well below
2050
2ºC
as well as pursue further efforts to limit the temperature increase
to 1.5ºC
Timing within • The pro-cyclical nature of mining investment means that new
the economic mines are usually approved when commodity prices are higher
cycle is very • Given the long development time frames required to bring
important when new mine supply on line, the timing as to when this becomes
Future bringing new available in the economic cycle is difficult to predict and could
become available at low points in the economic cycle, creating
commodity mine supply
excess supply in the market
online
supply
$30bn
estimated 2020 diversified miners’ total capital expenditure
compared to a 10 year average of c.$36bn (estimated)
Changes in • The industrialisation and urbanisation of developing economies

population and over the last decade has driven significant growth
growth of in commodity demand
• China’s rapid growth over this period now means that it
Demand developing
accounts for up to half of global demand for most commodities
economies is
for the generally • Looking forward, the world is forecast to add 1.9 billion people by
commodities impactful on 2050, with much of this growth in highly populous
industrialising economies
we produce commodity
• All potential decarbonisation pathways require significantly
demand
more non-fossil fuel commodities
1 Mtpa
forecast annual average growth in copper demand 2020 to 2050
under a Rapid Transition pathway scenario (IEA SDS).
Emerging drivers
Higher • Widespread adoption of renewable energy sources as a means

commodity of decarbonising energy supply will create significant new
prices and demand for the current enabling commodities, including
resource scarcity copper, nickel, cobalt and lithium
increases the risk • The quantum of potential new demand is generally of a size
that is large relative to current annual production and known
Substitution of material
defined global resources of that commodity
substitution

Impact on our industry How we are responding
• This transition is likely to increase the cost for fossil fuels, impose • We recognise our responsibility to contribute to the global effort
levies for emissions, increase costs for monitoring and reporting to achieve the goals of the Paris Agreement by decarbonising
and reduce demand our own operational footprint
• Third parties, including potential or actual investors, • We believe that our contribution should take a holistic
may introduce policies materially adverse to Glencore due to approach and have considered our commitment through
our interest in fossil fuels, particularly coal the lens of our total emissions footprint
• Technological advances are making renewable energy sources • In line with the ambitions of the more demanding 1.5-degree
more competitive with fossil fuels, which is likely to increase Celsius scenarios set out by the Intergovernmental Panel on
renewable energy’s market share over the longer run. Many Climate Change, we target a 40% reduction of our total (Scope 1,
analysts believe that demand projections for coal are now lower 2 and 3) emissions by 2035 on 2019 levels. Post 2035, our
than previously expected ambition is to achieve, with a supportive policy environment,
net zero total emissions by 2050
• Over-investment creates oversupply and, with it, a potentially • Our disciplined approach to capital allocation seeks to reflect
prolonged period of low commodity prices market supply and demand dynamics
• Although commodity prices have increased from the lows seen • Given the unpredictability of costs, risks and timing of large-
in early 2016, the experience of the last economic cycle has scale greenfield projects, we prefer to add supply via targeted
increased investor pressure on companies to be more cautious capital efficient/lower risk brownfield expansions when required
about investing in new supply • With the expectation that growth drivers in the global economy
• Balancing a finite, declining resource base with the need to will become weighted towards decarbonisation spending, in
grow to meet expected future demand is an inherent challenge addition to the metals needed for everyday life, the extensive
for companies in the resource sector part of our commodity portfolio which supplies this demand,
is well placed to benefit from this transition
• Current levels of industrialisation and urbanisation suggest, in • Energy transition commodities such as copper, nickel, cobalt
isolation, that demand growth rates for commodities could be and vanadium could become substantially more important
lower in the future. Lower or negative demand growth could given their role in the technologies that underpin low or no
generate excess supply along with lower commodity prices. carbon energy sources
However, post Covid-19, large-scale government expected • We are a leading producer of metals that enable low-carbon
stimulus, particularly if directed towards infrastructure, could be and carbon-neutral technologies
supportive for commodity demand • We are prioritising capex towards transition commodities,
• Continued population growth, particularly in Africa and South including our Collahuasi copper JV and our Canadian INO
East Asia could generate additional demand for commodities nickel life extension projects
• The transition to a low-carbon future is overall positive for
Glencore. All energy demand decarbonisation pathways require
our metals enabling commodities
An extra 1.8 billion people forecast
to increase global energy demand
19%
by 2040 under IEA Stated Policies Scenario
Impact on our industry How we are responding
• The revenue and earnings of substantial parts of our industrial • Diversification of our portfolio of commodities, currencies,
asset activities, and to a lesser extent, our marketing activities, assets and liabilities is likely to mitigate the financial impact
are dependent on prevailing commodity prices of a negative demand shift in the event of a particular
• Under a rapid decarbonisation scenario, a significant increase in commodity substitution
demand for the commodities that currently underpin • Our market research teams continue to assess the underlying
renewable technologies is likely to generate significantly higher demand for our commodities as well as the new materials that
prices for those commodities could impact current renewable technology solutions
• Higher sustained commodity prices will increase the risk that
consumers of these commodities will accelerate efforts to either
reduce the quantity of material needed for a certain application
or substitute an alternative that provides similar technical
performance at a lower price. Demand for a commodity such as
cobalt could fall if newer battery chemistries can provide the
same technical performance with less or no cobalt content

BUSINESS MODEL
As a global producer and marketer of commodities, we are
uniquely diversified by geography, products and activities.
Integrating our marketing and industrial business sets us
apart from most of our competitors in creating an enhanced
entrepreneurial focus on value generation
Inputs and resources on which

our business model depends
ASSETS AND NATURAL
RESOURCES
• Our resources and reserves
feature many long-life and
high quality assets
• We are a disciplined producer,
seeking to align supply with
demand and value over volume Our industrial business
• Our established marketing Our industrial business spans the
operations have global reach metals and energy markets,
and deep understanding of producing multiple
their respective markets commodities
from over 65 assets
OUR PEOPLE AND PARTNERS
• We have established long-term
relationships with a broad range
of suppliers and customers across
diverse industries and geographies
• c.145,000 employees and contractors Exploration, acquisition and development
spread across over 35 countries in
both established and emerging Our focus on brownfield sites and exploration close
regions for natural resources to existing assets lowers our risk profile and lets us
use existing infrastructure, realise synergies and
FINANCIAL DISCIPLINE control costs.
• We seek to deploy capital
Extraction and production
in a disciplined manner,
seeking to create value for We mine and beneficiate minerals across a range of
all our stakeholders commodities, mining techniques and countries, for
• Our hedging strategies protect processing or refining at our own facilities, or for sale.
us against price risks and ensure that
our marketing profitability is primarily
determined by volume-driven Processing and refining
activities and value-added services Our expertise and technological advancement in
rather than absolute price processing and refining mean we can optimise
our end products to suit a wider customer base
UNIQUE MARKET KNOWLEDGE
and provide security of supply as well as valuable
• As a significantly integrated market knowledge.
commodity producer and marketer,
we are uniquely positioned
to generate value at every stage Our recycling We recycle key
of the commodity chain commodities fuelling
business the circular economy
Our values reflect our purpose, our

SAFETY OPENNESS
priorities and the beliefs by which
we seek to conduct ourselves and
carry out our business activities. INTEGRITY SIMPLICITY
They define what it means to work
at Glencore, regardless of location RESPONSIBILITY ENTREPRENEURIALISM
or role.

Outputs and impact

on key stakeholders
INVESTORS
$11.6bn
2020 Adjusted EBITDA◊
Our marketing business
We move commodities
from where they are plentiful
to where they are needed
$4.4bn
Free cash flow (FFO less net purchases
of property, plant and equipment)
OUR PEOPLE
7%
Logistics and delivery
Our logistics assets and capabilities allow us to handle
large volumes of commodities, both to fulfil our Decrease in total recordable injury rate
obligations and to take advantage of demand and
supply imbalances. These value added services make
us a preferred counterparty for customers without
such capabilities.
COMMUNITIES AND SOCIETY
Blending and optimisation
Our ability to blend and optimise allows us to offer
a wide range of product specifications, resulting in an
$95m
Community and Covid-19 support
ability to meet our customer specific requirements
and provide a high-quality service.
PAYMENTS TO GOVERNMENTS
$5.8bn
Our commodities The products we
produce and market
in everyday play an essential role
products in modern life
Our marketing Our industrial Sustainability Our strategy for a

business business framework sustainable future
Page 52 Page 60 Page 33 Page 10

OUR STRATEGY FOR A
SUSTAINABLE FUTURE
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
OUR PURPOSE STRATEGIC OBJECTIVE
Responsibly To be a leader in
enabling
sourcing the decarbonisation of energy
usage and help meet
commodities continued demand for the
metals needed in everyday
that advance life while responsibly
meeting the energy
everyday life needs of today

STRATEGIC PRIORITIES
Integrity, responsibility and to focus on reducing and ethics and compliance

safety are our core values the carbon footprint of programmes, advancing
that are embedded in our operations and will our environmental
everything we do. We are allocate financial returns performance, respecting
Responsible committed to operating towards fullfilment of human rights and
production ethically, responsibly, our business strategy. by developing, maintaining
and and to contributing Our commitment is and strengthening our
supply to socioeconomic delivered through our relationships with all of
development in the operational excellence, our stakeholders.
countries where we health and safety
operate. We will continue
We will prioritise investment decarbonisation of accretive Scope 1+2

in metals that support the energy systems. abatement opportunities
decarbonisation of energy Our capital allocation that help achieve medium-
usage as well as help meet supports this strategy term Paris alignment and
Responsible demand for metals needed through the optimal our 2050 net-zero ambition.
portfolio in everyday life. We will balance of debt and
also reduce our coal
management production in line with
equity, distributions to
shareholders and business
our various climate action reinvestment in transition
commitments and commodities and value
the electrification and
A low-carbon future We will participate in

requires responsibly global efforts to improve
produced low-carbon abatement technologies
metals. We will seek and availability, as well as
opportunities to increase resource use efficiency
Responsible the proportion of green by contributing to the
product use metals we can supply circular economy.
to customers from our
own operations and
through our extensive
marketing activities.

OUR STRATEGY FOR A SUSTAINABLE FUTURE
continued
Strategic Performance in 2020

priorities
Operational performance Climate change Water management

After allowing for managed production We recognise our responsibility Operations continue
adjustments, targeting margin over volume, the to contribute to the global effort to implement our Water
majority of our key assets performed in line with to achieve the goals of the Paris Management Guideline,
expectations. Our copper, zinc, and coal portfolios Agreement by decarbonising focused on responsible water
maintained their first quartile cost/margin our own operational emissions management, in alignment
positions, while the nickel portfolio (ex-Koniambo) footprint. In line with the with the International
RESPONSIBLE again recorded a second quartile cost position. ambitions of the 1.5-degree Council for Mining & Metals’
PRODUCTION Calculated copper, zinc and nickel EBITDA Celsius (ºC) scenarios set out by (ICMM) position statement
AND SUPPLY margins increased year-on-year while coal’s the IPCC, we have set ourselves on water and its water
margin decreased in line with lower coal prices. the target of reducing our total management framework.
(Scope 1, 2 and 3) emissions by
Safety 40% by 2035 on 2019 levels. Post Community engagement
Regrettably, there were eight fatalities during 2035, our ambition is to achieve, Our community development
the year. We implemented our enhanced fatality with a supportive policy programmes are an integral
reduction programme, and have overhauled our environment, net zero total part of our community and
“SafeWork” programme for relaunch in 2021. emissions by 2050. stakeholder engagement
We continue to work towards the elimination strategies. In 2020, we spent
of fatalities from our business. $95 million on these and
Covid-19 support programmes
Our TRIFR and LTIFR decreased by 7% and 5%
(2019: $90 million).
respectively compared to 2019.
Conservatively positioned Bonds Credit rating

Capital structure and credit profile managed We issued $2.0 billion, EUR 950 The Group’s credit
through targeting a maximum 2x Net debt/ million and CHF 225 million ratings are currently Baa1
Adjusted EBITDA throughout the cycle, of bonds across a range of (negative outlook) from
augmented by an upper Net debt cap maturities from 5 to 10 years. Moody’s and BBB+ (stable)
of c.$16 billion excluding Marketing-related Post-2020 maturities are from Standard & Poor’s.
lease liabilities. capped at c.$3 billion in
RESPONSIBLE any one year. Credit facility
Year-end Net debt and Net debt to Adjusted
PORTFOLIO EBITDA were $15.8 billion and 1.37x respectively. The Revolving credit facilities
MANAGEMENT Reinvestment were refinanced and slightly
Net loss attributable to equity holders for 2020
was $1.9 billion. Our net 2020 cash capital increased in 2020 to $14.625
expenditure of $3.9 billion was billion. Committed available
weighted towards transition liquidity of $10.3 billion at
commodities with c.82% of our year-end covers more than
expansionary capital invested in three years of upcoming
our metals business, including bond maturities.
the Katanga copper/cobalt
operation, INO life extension
projects (nickel) and the
Zhairem zinc project.
Marketing green metals Responsible sourcing

We are one of the largest suppliers of aluminium Glencore became a member In addition to our new
to global markets. Significant offtake agreements of the Fair Cobalt Alliance (FCA) partnership with the FCA, as
with low-carbon producers results in more than in 2020. Through the FCA, we a member of the Responsible
60% of our ex-China marketing book currently will support legitimate artisinal Minerals Initiative, we also
being low-carbon. We will continue to focus on and small-scale mining participate in programmes
expanding this footprint. (ASM) cooperatives in their to develop frameworks and
RESPONSIBLE endeavours to transform standards that support
PRODUCT USE their practices and align with responsible ASM.
international human rights
practices, especially in the
prevention of child labour.

Key performance Risk Management

indicators Page 70
Page 22
Priorities going forward KPIs Principal

risks
Operational excellence Under all credible scenarios, • Value for our • Health,
Continued focus on operational efficiencies fossil fuels (coal, gas and oil) will shareholders – Adjusted safety and
and improvements to minimise operating continue to be a part of the EBIT/EBITDA, Net environment
costs and maximise margins. global energy mix for many income attributable • Climate change
years to come. to equity holders • Community
Sustainability We will responsibly steward the • Safe and healthy relations and
We continue to implement activities that decline of our coal business as it workplace – fatalities, human rights
promote integration of sustainability meets society’s energy needs TRIFR, LTIFR and
throughout our business to support our through the energy transition. occupational
commitment to continuously improve disease cases
our standards of health, Transparency • Environmental
safety, environmental and community We are committed to operating performance –
and human rights performance. transparently, responsibly and water withdrawn,
meeting or exceeding Scope 1 and 2
Managing emissions applicable laws. emissions, meeting
We are working with global specialists our commitments
and draw on local expertise within our on climate change
operational teams to identify value • Long-term value
accretive abatement opportunities to for communities –
further reduce our carbon footprint. community
investment spend
Balance sheet In the medium term, we target • Returns to shareholders • Supply, demand
We are committed to strengthening our leverage at the low end of our – Funds from and prices
balance sheet to ensure it is capable of $10-$16 billion Net debt operations, Net funding for the
supporting our purpose and strategy guidance range (below the and Net debt and commodities
midpoint by end of 2021), annual capital return / we produce
Investment grade rating including a Net debt/Adjusted distributions • Currency
We will preserve a robust capital structure EBITDA ratio closer to c.1x. • Value for our exchange rates
and business portfolio that reflects our shareholders – Adjusted • Liquidity
Reinvestment EBIT/EBITDA, Net
commitment to targeting, receiving and • Counterparty
maintaining a strong BBB/Baa Prioritise investment in income attributable credit and
investment grade rating. In this regard, transition commodities and to equity holders performance
we continue to target a maximum 2x Net value accretive Scope 1+2
debt/Adjusted EBITDA through the cycle, abatement opportunities that
augmented by an upper Net debt cap help achieve our medium-term
of c.$16 billion, excluding Marketing- Paris alignment and 2050
related lease liabilities. net-zero ambition.
Partnerships Circular economy • Returns to shareholders • Geopolitical,

Working with our customers and Leverage our value chain to – Funds from permits and
supply-chain to enable greater use of expand the volume of operations, Net funding licence to
low-carbon metals and support progress recyclable commodities for and Net debt and operate
towards technological solutions processing through our global annual capital return / • Laws and
network of metallurgical assets. distributions enforcement
Abatement • Value for our • Operating risk
Supporting uptake and integration Responsible sourcing shareholders – Adjusted
of abatement – an essential contributor Pursue strategic long-term EBIT/EBITDA, Net
to achieving low or net zero carbon agreements to provide a reliable income attributable
objectives supply of responsibly-produced to equity holders
commodities essential to the
low-carbon economy

EVOLVING OUR APPROACH TO ARTISANAL
AND SMALL-SCALE MINING (ASM)
As a major copper and cobalt miner in the Democratic Republic
of the Congo (DRC), we have long engaged on the issue of ASM
with communities around our businesses, the DRC Government,
civil society and other key stakeholders, including our customers.
Following this engagement, last year we revised our approach,
further exploring how ASM and large-scale mining (LSM) can
sustainably co-exist as distinct yet complimentary sectors of a
successful mining industry. Although we do not mine or trade any
cobalt from artisanal sources, we believe that legal ASM can play
an important and sustainable role in the DRC economy. However,
it must be carried out safely, transparently and without the use of
child or forced labour.
We have also joined the Fair Cobalt Alliance (the Alliance). The
Alliance’s mission is to positively transform ASM in the DRC and
work towards eliminating child and forced labour, as well as other
dangerous practices. Through its partners in the DRC, the Alliance
aims to tackle long-standing challenges within the ASM sector. Its
objectives include achieving a child-labour free Kolwezi, supporting
the professionalisation of ASM through the adoption of responsible
mining practices, and identifying and supporting alternative
livelihoods to help increase incomes and reduce poverty.
STORIES FROM THE YEAR We are already committed to working with our local communities
and other stakeholders in the DRC to address the endemic
Cobalt Alliance: A case study poverty in this region that is the underlying cause of ASM.
Glencore, through our support of the Alliance, supports legitimate
ENABLING
ASM cooperatives in their endeavours to transform their practices
and align with international human rights practices, especially in
the prevention of child labour.
POSITIVE
CHANGE
In light of our recent membership Glencore believes that legal
ASM can play an important
of the Fair Cobalt Alliance, we and sustainable role in the
explore the issue of responsible DRC economy when carried
out responsibly and
sourcing, what we’re doing transparently; we also
about ASM, and what we believe that alternative
livelihood activities to ASM
hope the Fair Cobalt is key for a diversified and
Alliance can achieve. sustainable economy for the
communities living around
our operations.
We are already committed to working

with our local communities and other
stakeholders in the DRC to address
the endemic poverty in this region
that is the underlying cause of ASM.
For example, former ASM women
have created sewing cooperatives
as an alternative livelihood activity.

COBALT: A CASE FOR LEADERSHIP IN “WE CANNOT IGNORE ARTISANAL MINING”

RESPONSIBLE SOURCING On the ground, we are committed to operating ethically,
As an industrial mining operation, we do not process, buy or trade responsibly and respecting human rights everywhere we
ASM material. operate. This includes zero tolerance for child labour.
Historically, ASM has been associated with significant challenges. We believe we have a responsibility to collaborate with local
High unemployment and subsistence living can push miners into stakeholders to help address social challenges in the regions that
taking great risks resulting in child labour and illegal intrusions host our operations.
onto active industrial sites – including our own – continuing to Our Kamoto Copper Company business (KCC) supports social
present risks to both our people and communities. As a responsible development through its many local programmes, in particular
miner, we do not tolerate any form of child or forced labour. Also a series of initiatives designed to fight child labour and develop
we do not tolerate illegal intrusions onto mining concessions. alternative sources of livelihoods for the community. These include
While these challenges exist, ASM is a significant source of supporting over 162 agricultural co-operatives providing food
employment within the DRC for as many as 2 million people self-sufficiency and income generation to over 3,500 members
across the country. The DRC’s geological cobalt endowment is and their dependents, and upskilling over 2,000 small business
unrivalled – the country has around 60% of the world’s known association members who support 12,000 dependants. KCC and
cobalt reserves. This means that while the DRC hosts the largest Glencore have also improved learning conditions for over 54,000
industrial cobalt mines in the world, smaller operations including primary and secondary age school children, and in 2019 ran school
ASM can also be economically viable and will continue to exist. holiday camps for 10,000 children.
Although we do not trade ASM sourced cobalt today, we As the world calls for more cobalt and copper to power the energy
recognise the legitimacy of cobalt from responsible ASM and transport revolutions, the demand for these vital everyday
operations in the global supply chain and welcome the efforts by commodities will reinforce the global importance of the DRC. It is
responsible sourcing initiatives and international organisations to crucial that all supply chains, including both cobalt and copper,
improve practices and address risks of human rights violations. In are sustainable, ethical, and responsible.
addition to our new partnership with the Alliance, as a member of
the Responsible Minerals Initiative and the Global Battery Alliance,
we participate in programmes to develop frameworks and
standards that support responsible ASM.
As part of Capacity Building for Associations,

Glencore, through our support to the Fair
Cobalt Alliance, will support legitimate ASM
cooperatives in their efforts to transform
their practices and align with international
human rights practices, in particular in the
prevention of child labour.

CLIMATE CHANGE
Our portfolio enables the transition to a low-carbon
economy, while meeting society’s energy needs as
it progresses through the transition
CLIMATE REPORT 2020: PATHWAY TO NET ZERO We have a responsibility to contribute to the global effort to
In late 2020, we published our third report on climate change, achieve the goals of the Paris Agreement by decarbonising
Climate Report 2020: Pathway to net zero. This report focuses on our own operational emissions footprint. We believe that our
how we will deliver our targeted 40% reduction in total emissions contribution should take a holistic approach and have considered
by 2035 on 2019 levels and our ambition, with a supportive policy our commitments through the lens of our total emissions
environment1, to be a net-zero total emissions company by 2050. footprint. Our commitment to reduce our Scope 1, 2 and 3
These reductions will be underpinned by the managed reduction emissions and our coal production is consistent with the IPCC
of our coal portfolio. and IEA 1.5°C scenarios.
Led by the Climate Change working group – see page 92 – we Under all credible scenarios, fossil fuels (coal, gas and oil) will
formulated our climate change strategy in partnership with key continue to be a part of the global energy mix for many years
stakeholders. Our ongoing engagement activities are core to our to come. Facilitating investment into deploying low emission
commitment to inform stakeholders on our progress, and technologies, carbon capture and adaptation efforts should be
demonstrating our portfolio resilience under a range of scenarios. a priority.
Our Climate Report is available on our website at: We cannot achieve net zero alone. Continued reductions in
emissions will depend on coordinated government policies,
glencore.com/sustainability/reports-and-presentations including incentives to drive accelerated uptake of lower carbon
OUR APPROACH and decarbonisation technologies, and market-based regulations
governing industrial practices that drive a competitive, least-cost
We understand the role the commodities we produce and emissions reduction approach.
market have in meeting the needs of daily lives. The diversity of
our portfolio underpins our strategic ambition to play a leading As a member of the International Council on Mining and Metals,
role in enabling the decarbonisation of global energy usage our assets consider their Integrated Mine Closure: Good practice
through providing metals such as copper, cobalt, zinc and nickel guide, which includes a focus on social provision in closure
that are essential to the transition to a low-carbon economy, and planning, in their management systems. We recognise the need
managing down our coal business by 40% or more from current to collaborate with national and regional governments, as well as
levels by 2035. our communities, to ensure a just transition through the transition
to a low carbon economy.
We recognise the need for action. We have set ourselves a
1.5-degree Celsius (°C) pathway aligned target of an absolute 40% REDUCING SCOPE 3 EMISSIONS
reduction of our total emissions (Scope 1, 2 and 3) by 2035 on 2019 Scope 3 emissions form a material part of the mining sector’s
levels, consistent with the midpoint of Intergovernmental Panel carbon footprint and, as such, we have taken a holistic approach
on Climate Change’s (IPCC) 1.5°C scenarios and the 1.5°C pathways to our commitments, and included Scope 3 emissions in our
set out by the International Energy Agency (IEA). Post 2035, we set target and ambition.
ourselves the ambition to achieve, with a supportive policy
environment, net zero total emissions by 2050. The most significant contributor to our Scope 3 emissions is our
customers’ usage of the fossil fuels we produce (predominantly
OUR POSITION ON CLIMATE CHANGE coal). Recent years have seen significant declines in use of coal for
We support the global climate change goals outlined in the power generation in Europe, largely displaced by natural gas and
United Nations Framework Convention on Climate Change LNG. In the Asia-Pacific region, the key destination for our
(UNFCCC) and the Paris Agreement. We believe that only through Australian and South African coal production, coal is the
collective global action can the world achieve the goals of the predominant source of fuel for power generation and, we believe,
Paris Agreement and limit the impact of climate change. Demand will remain a vital transition fuel until such time as alternative
for renewables technologies, and the metals and minerals required infrastructure can be approved, financed and constructed.
to build them, is expected to grow exponentially in response to the Our total Scope 3 emissions in 2020 were 271 million tonnes CO2e,
decarbonisation of global energy supply and electrification of key a decrease on the 343 million tonnes CO2e in 2019, reflecting lower
sectors, including mobility and its associated infrastructure. energy use by industry in this most challenging year. Our
We recognise global climate change science as laid out by the customers’ usage of the fossil fuels we produced totalled 253
IPCC and the need to meet the goals of the Paris Agreement. million tonnes CO2e (2019: 326 million tonnes CO2e), being around
The world requires a global transformation of energy, industrial 93% of our total Scope 3 emissions. Emissions resulting from
and land-use systems to achieve these goals. As one of the largest customers’ use of the oil products refined at the Astron refinery
diversified natural resource companies in the world, we can are excluded from our Scope 3 emissions total as we neither
support the achievement of the goals by producing, trading originate nor consume the products.
and supplying the metals and minerals that are essential to the We expect our coal portfolio to produce no more than 85mt by
transition to a low-carbon economy and to meeting the needs 2035, down 40% from 2019 levels. By 2050, our only remaining coal
of everyday life. mines, if any, will likely be in Australia, with any post-2050
production, including for metallurgical purposes, assumed to be
neutralised directly through carbon capture, utilisation and
storage, or indirectly through offsets.
1 Coordinated government policies, including incentives to drive accelerated uptake of lower carbon and decarbonisation technologies, and market based regulations governing
industrial practices that drive a competitive, least cost emissions reduction approach, are critical to our ability to achieve our ambition of net zero total emissions by 2050.

Our 2020 Sustainability Report will provide a full disclosure on

Illustrative Adjusted EBITDA mix (%)
all of the Scope 3 categories that are relevant and material to
Portfolio transition – declining coal Adjusted EBITDA contribution
our activities.
100
REDUCING OUR OPERATIONAL FOOTPRINT
We have set ourselves a 1.5°C pathway aligned target of an
80
absolute 40% reduction of our total emissions (Scope 1, 2 and 3) by
2035. Given the impact of the coronavirus pandemic on both
mine supply and industrial demand, particularly for thermal coal, 60
we have taken 2019 rather than 2020 as the baseline year.
We work with global specialists and draw on the local expertise 40
within our operational teams to identify ways to further reduce
our Scope 1 and 2 emissions. Our approach has led to the
implementation of initiatives that reduce these emissions, while 20
continuing to meet our obligations to our customers.

Our group-wide marginal abatement cost curve (MACC) identifies 0
2018 2050
and quantifies opportunities to reduce our carbon footprint and
Metals/other
supporting our assessment of cost-ranked emission reduction Coal industrial
initiatives. These include utilising more power from low-carbon
sources and delivering operational improvements and technologies
that enhance efficiencies, resulting in emissions reductions. a 13.2% reduction achieved. We achieved the reduction of our
We are continuing to manage our assets responsibly and to carbon intensity through a range of measures, including
collaborate with governments and local communities to deliver operational abatement and production changes, as well as lower
sustainable economic benefits. coal seam emissions due to the closure of a coal underground
We divide CO2 emissions reporting into three different scopes, in operation in Australia.
line with the Greenhouse Gas Protocol, and measure both the Going forward, we will report annually on progress against
direct and indirect emissions generated by the industrial activities, our new target of a 40% reduction in Scope 1, 2 and 3 emissions
entities and facilities where we have operational control. by 2035.
Scope 1 (measured in CO2e) includes emissions from combustion INVESTING IN TRANSITION METALS
in owned or controlled boilers, furnaces and vehicles/vessels, from
the use of reductants and fugitive emissions from the production A key input into reducing our overall footprint will be our allocation
of coal and oil (direct emissions). of capital in a way that prioritises investment and sustaining
expenditure in our portfolio’s transition metals.
Scope 2-location-based emissions (measured in CO2) principally
relate to purchased electricity for our operations. In particular We disclose how we ensure our material capital expenditure
our metals processing assets, which require secure and reliable and investments align with the goals of the Paris Agreement,
energy 24 hours a day, 365 days a year. For the calculation of the including our costs relating to the exploration, acquisition or
Scope 2-location-based emissions the relevant grid emission development of fossil fuel production, resources and reserves,
factors to all our purchased electricity, regardless of specific as well as for the metals essential to the transition to a low-
renewable electricity contracts (indirect emissions), are applied. carbon economy.
Scope 3 emissions (measured in CO2e) relate to the indirect We have adopted the IEA’s global energy and emission scenarios
greenhouse gas emissions further up and down our value chain. and extended the scenario analysis to include the evolution of
These include upstream emissions associated with the products metals demand as the world transitions to greater electrification
and services we purchase from suppliers and downstream and adoption of metal-intensive wind, solar and battery
emissions that include emissions resulting from our customers’ technologies. However, as no single pathway can define how
use of the fossil fuels that we produce, their processing of our individual economies and the world will transition, the IEA’s
metals and concentrates, the emissions resulting from time- scenarios describe a range of potential outcomes dependent
chartered vessels and emissions resulting from joint ventures. on the rate at which transition policies are implemented. We
use each of these scenarios to test the resilience of our portfolio,
We have exceeded our 2020 target of reducing Scope 1 and 2 assess the market fundamentals for our products and to inform
emissions intensity by 5% compared to the 2016 baseline, with our decisions on capital allocation.
The chart below illustrates our pathway to achieve our medium-term target and long-term ambition.
Illustrative emissions pathway to net zero

(million tonnes CO2)
40%
Reduction
Scope 1+2+3
Net Zero
Scope 1+2+3
2019 Asset Depletion Net Assets Depletion Decarbonise 2035 Energy Efficiency Asset Investments Offsets and Coal Depletion 2050
Scope 1+2+3 Scope 1+2 Scope 3 Scope 1+2 Scope 1+2+3 + Fuel Switch Scope 1+2+3 efficiencies Scope 1+2+3 Net Zero

CLIMATE CHANGE
continued
Results of scenario testing

Commodity Scenarios as set out in
businesses* Climate Report 2020:
and outlook Pathway to Net Zero Scenario impacts
Copper Current Pathway Growth in renewables power generation capacity, electric vehicle sales and
(39%) associated infrastructure to underpin our forecasted 15% increase in copper
demand by 2025 on 2019 levels. The Current Pathway is projected to increase
demand by 45% by 2035 and 95% by 2050.
Rapid Transition and The required greater acceleration in investments to decarbonise economies
Radical Transformation under the Rapid Transition and Radical Transformation could further drive
copper demand and support rises of 50% and 100% on 2019 levels in 2035 and
2050 respectively.
Ferroalloys Current Pathway In South Africa, rising electricity prices and carbon taxes will exacerbate
(not the pressure currently felt in ferrochrome smelting. Continuing demand
financially for chrome will support the ongoing operation of ferrochrome mines in
material) South Africa.
Rapid Transition and The accelerated adoption of renewable technologies such as solar and wind
Radical Transformation power generation, which depend on chrome and vanadium, amongst other
metals, for the generation, transmission and storage of low-carbon energy
underpins demand growth for our ferroalloys business, balanced by pressures
on ferrochrome smelting in South Africa.
Nickel Current Pathway Nickel’s use in batteries, EVs and energy storage systems will result in its
(5%) demand rising in the Current Pathway to 130% of 2019 levels by 2025. By 2035,
the scenario requires 135% more nickel and by 2050, cobalt displacement
leads to increases in nickel demand of 250% above 2019 levels.
Rapid Transition and The adoption of policies needed for the Rapid Transition and Radical
Radical Transformation Transformation could drive a 200% increase in demand growth by 2035
on 2019 levels and a continued growth to 270% by 2050.
Zinc Current Pathway The electrification, industrialisation and urbanisation of developing

(18%) economies supports demand growth for zinc, due to its anti-corrosive
properties and use as an alloy in materials used in automobiles, electrical
components, and household fixtures. This leads to zinc demand rising to 106%
of 2019 levels by 2025. By 2035, the Current Pathway requires 20% more zinc,
and by 2050 demand reaches 145% of 2019 levels.
Rapid Transition and The major transformation of the global energy system necessary to achieve
Radical Transformation the goals of the Paris Agreement is zinc’s use in offshore wind-energy
generating facilities. These scenarios show zinc demand growing to 150%
of 2019 levels by 2035 and to 200% by 2050 on 2019 levels.
Coal Current Pathway Up to 2030, the Current Pathway sees coal demand growth in Asia offsetting
(10%) further declines in the Atlantic markets and demand exceeding supply
capacity in the absence of substantial investment to mine extensions.
Rapid Transition and Policies supporting the Rapid Transition and Radical Transformation will lead
Radical Transformation to significant coal demand decline over the longer term. The ongoing use of
existing coal power generation facilities will require negative carbon
technologies, including CCUS and DAC, 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 Current Pathway Marketing remains core to our business model, differentiating Glencore from
(32%) its mining peers. Marketing and trading margins are expected to adapt with
climate initiatives. The agility of our marketing business enables it to adapt to
changing circumstances and benefit from various trading and arbitrage
Rapid Transition and opportunities that will inevitably arise as economies transition at different
Radical Transformation rates. Our marketing business will continue to expand into new areas, as
already evidenced with the addition of LNG 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.
* 2020 Adjusted EBITDA contribution

Our performance
Scope 1 Scope 2 Carbon Scope 1 and 2 Total global energy use Scope 3
(direct emissions)1 location-based2 emissions intensity3 at our operated assets4 (CO2e million tonnes)
(CO2e million tonnes) (CO2 million tonnes) (tGHG/tCu) (petajoules)
11.7 4.35 4.40 4.13 3.93 3.78 209 210 343

11.0 313
18.8 18.3 180
9.3 271
15.0
2018 2019 2020 2018 2019 2020 2016 2017 2018 2019 2020 2018 2019 2020 2018 2019 2020
Baseline
1 This includes emissions from reductants used in our metallurgical smelters. It also includes CO2e of methane emissions from our operations, which is around 24%
of our Scope 1 emissions.
2 We apply appropriate country-by-country grid emission factors to all of our purchased electricity, regardless of specific renewable electricity contracts.
3 Scope includes industrial assets; the 2016 baseline is amended to reflect acquisitions and divestments; Copper-equivalent production is calculated on the basis of fixed 2016
baseline year average commodity prices.
4 Renewable energy sources deliver 13.3% of our total energy needs (2019: 12.5%). In Australia, we use coal seam gas from our mines to supplement power generation at a
number of our assets and have flares installed at those underground coal mines with the necessary supply and concentration of methane.
We also take into consideration the various potential impacts The medium-term capital programme for our metals businesses
on our operating costs arising from existing and planned carbon will see a material investment cycle alongside our joint venture
pricing regulation. It is unclear what future mechanisms for partners in Collahuasi and Antamina. Notably, Collahuasi is
carbon pricing will be as there is limited to no uniformity between working on a desalination plant that will substantially eliminate
existing structures. The manner in which carbon pricing is its use of local freshwater sources in favour of water pumped
implemented will determine the competitiveness of different from the sea. The Canadian nickel projects will continue to be
energy sources and the role of fossil fuels, as well as having developed over the next few years, with mine commissioning
impacts across our full value chain and in turn drive demand expected in 2024-25.
for our products.
MANAGING RISK AND OPPORTUNITY
2020 CAPITAL ALLOCATION, INCLUDING CAPEX Assessing climate change-related risks is part of our Group risk
ALLOCATED TO COAL AND OIL management and strategy development processes. Effective
Our disciplined approach to capital allocation seeks to reflect and strategic management of climate change-related risks and
market supply and demand dynamics. As a major producer of opportunities across all aspects of our business is vital to our
the commodities that underpin the current battery chemistry continued ability to operate.
and infrastructure growth initiatives that are expected to power We integrate risk management throughout our business
electric vehicles and energy storage systems our capital through a structured risk management process that establishes
expenditure (currently and into the future) is heavily weighted a common methodology for identifying, assessing, treating and
towards energy transition metals, including various South monitoring risks.
American copper projects, African copper and cobalt, Kazakhstan
In 2020, we conducted assessments of physical and regulatory
polymetallic investments and nickel projects in Canada.
risks to our operations against the Current Pathway and Rapid
In 2020, industrial capital expenditure was $4.1 billion (2019: $5.3 Transition scenarios. Our Climate Report 2020: Pathway to net
billion), of which $787 million or 18% related to coal (2019: $990 zero details the risks and opportunities identified across the
million). With expansionary expenditure at the United Wambo business, as well as the mitigating actions.
joint venture largely complete, we do not expect an increase in
Our work programme for 2021 includes:
coal capital expenditure in 2021.
Following the commissioning of United Wambo in December • Validating the 2019 baseline for Scope 3 emissions
2020, the currently approved capital programme for the coal • Progressing commodity departments’ marginal abatement
business is limited to stay-in-business capital expenditure and cost curves to support our assessment and implementation
extensions at existing mines. The remaining 82% of our 2020 for CO2 emission reduction projects
industrial capital expenditure was weighted towards copper and
cobalt (together 40%), zinc (19%) and nickel (13%). Key projects are
the finalisation of Katanga’s processing infrastructure; progression
of the Zhairem zinc mine in Kazakhstan; and development of new
nickel mines in Canada.

CLIMATE CHANGE
continued
DELIVERING ON OUR AMBITIONS

We plan to deliver our ambition of net zero total emissions by 2050 through seven core actions:
Managing our footprint
Footprint Reduction Capital

MANAGING OUR REDUCING SCOPE 3 EMISSIONS ALLOCATING CAPITAL
OPERATIONAL FOOTPRINT Our diverse portfolio uniquely allows TO PRIORITISE
Reducing our Scope 1 and 2 emissions us to address this portion of our footprint TRANSITION METALS
through investing in our metals Providing the metals
portfolio, reducing our coal production that the world needs
and supporting deployment of low
emission technologies
Contributing to global decarbonisation
Partnership Abatement Technology Transparency

COLLABORATING WITH SUPPORTING UPTAKE UTILISING TECHNOLOGY TRANSPARENT
OUR VALUE CHAINS AND INTEGRATION TO IMPROVE RESOURCE APPROACH
Working in partnership with OF ABATEMENT USE EFFICIENCY Reporting on our progress
our customers and supply An essential contributor to Contributing to the and performance
chain to enable greater use achieving low – or net zero circular economy
of low-carbon metals and carbon objectives
support progress towards
technological solutions
ENGAGEMENT AND DISCLOSURE During 2020, we published our second Review of our Industry
We are committed to reporting transparently on our progress Organisation’s Positions on Climate Change. The Review
in meeting our climate change objectives and data on our considered these industry organisations’ advocacy activities and
total emissions. public statements and whether they aligned with our support for
the goals of the Paris Agreement.
Industry association review Our assessment of these activities identified three regions/
We take an active and constructive role in public policy countries with significant movement on climate policies over the
development and participate in relevant trade associations. last few years: Australasia, Europe and South Africa. As such, we
We acknowledge the IIGCC Investor Expectations on Corporate focused our 2020 review on our direct and indirect advocacy
Climate Lobbying and recognise the importance of ensuring activities in these jurisdictions, recognising the importance of
that our membership in relevant trade associations does not concerted and pragmatic policy action to help achieve the goals
undermine our support for the Paris Goals. of the Paris Agreement.
The Review of our Industry Organisation’s Positions on Climate
Change is available on our website at:
glencore.com/sustainability/reports-and-presentations

Cross-reference table to Task Force on Climate-related Financial Disclosures
GOVERNANCE
Disclose the organisation’s governance around climate-related risks and opportunities
(a) Describe the Board’s oversight of climate-related risks and Corporate Governance Report: page 90
opportunities.
Board activities during 2020: page 93
Risk – Board leadership: page 70
Climate Report 2020: Pathway to net zero: page 10
(b) Describe management’s role in assessing and managing Board activities during 2020: page 93
climate-related risks and opportunities
HSEC Committee report: page 96
Climate Report 2020: Pathway to net zero: page 32
STRATEGY
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and
financial planning where such information is material
(a) D
escribe the climate-related risks and opportunities the Risk management – climate change: pages 82 – 83
organisation has identified over the short, medium,
Climate Report 2020: Pathway to net zero: pages 32 – 33
and long term.
(b) Describe the impact of climate-related risks and opportunities Risk management – climate change: pages 82 – 83
on the organisation’s businesses, strategy,
Climate Report 2020: Pathway to net zero: pages 10, 18, 19 – 21, 32 – 33
and financial planning.
(c) D
escribe the resilience of the organisation’s strategy, taking into Longer-term viability: pages 72 – 73
consideration different climate-related scenarios, including a
2°C or lower scenario.
RISK MANAGEMENT
Disclose how the organisation identifies, assesses, and manages climate-related risks
(a) D
escribe the organisation’s processes for identifying and Approach to risk management: page 70
assessing climate-related risks.
(b) Describe the organisation’s processes for managing climate- Climate Report 2020: Pathway to net zero: pages 32 – 33
related risks.
(c) D
escribe the targets used by the organisation to manage Risk management section: page 70
climate-related risks and opportunities and performance
against targets.
METRICS AND TARGETS

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such
information is material
(a) Disclose the metrics used by the organisation to assess Our performance: page 19
climate-related risks and opportunities in line with its strategy Climate Report 2020: Pathway to net zero: pages 9, 35 – 38
and risk management process.
(b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 Our performance: page 19
greenhouse gas (GHG) emissions, and the related risks. Key performance indicators: pages 22 – 23
(c) Describe the targets used by the organisation to manage

climate-related risks and opportunities and performance Our performance: page 19
against targets. Climate Report 2020: Pathway to net zero: pages 9, 32 – 33

KEY PERFORMANCE INDICATORS
Our financial and non-financial key performance indicators (KPIs) provide a measure
of our performance against the key drivers of our strategy
Financial key performance indicators

Adjusted EBIT/EBITDA◊ Net funding/Net debt◊ Funds from operations (FFO)◊ Net (loss)/income attributable
(US$ million) (US$ million) (US$ million) to equity holders
11,560 15,844 8,325

(US$ million)
(1,903)
15,767 34,366 35,428 11,595
32,138 1.60x
11,601 11,560 8,325 3,408

1.20x 7,865
9,143
17,556
15,844
14,710 0.80x
4,151 4,416 (404) (1,903)
0.40x
0.00x
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
EBITDA Net debt

EBIT Net funding
EBITDA ratio
Links to strategy Links to strategy Links to strategy Links to strategy
DEFINITION DEFINITION DEFINITION DEFINITION

Adjusted EBIT/EBITDA provide Net funding/Net debt demonstrates Funds from operations (FFO) is a Net income attributable to
insight into our overall business how our debt is being managed measure that reflects our ability equity shareholders is a measure
performance (a combination of and is an important factor in to generate cash for investment, of our ability to generate
cost management, seizing market ensuring we maintain an investment debt servicing and distributions shareholder returns.
opportunities and growth), and grade rating status and a to shareholders.
are the corresponding flow drivers competitive cost of capital. It comprises cash provided by 2020 PERFORMANCE
towards our objective of achieving Net funding is defined as total operating activities before working Net loss attributable to equity
industry-leading returns. current and non-current capital changes, less tax and net holders was $1.9 billion in 2020
Adjusted EBIT is the net result of borrowings less cash and interest payments plus dividends compared to $404 million in 2019.
revenue less cost of goods sold cash equivalents and related received and related Proportionate This was driven by non-cash
and selling and administrative Proportionate adjustments. Net adjustments, as appropriate. impairment charges largely taken in
expenses, plus share of income debt is defined as Net funding less the first half. These broadly reflected
from associates and joint readily marketable inventories and 2020 PERFORMANCE two factors: uncertain market
ventures, dividend income and the related Proportionate adjustments. FFO were up $460 million (6%) on conditions giving rise to lower
attributable share of Adjusted EBIT The relationship of Net debt to 2019. confidence in development of
of relevant material associates and Adjusted EBITDA is an indication of projects to which value had
Based on our prescribed
joint ventures, which are accounted our financial flexibility and strength. previously been allocated (Volcan,
distribution formula, segment cash
for internally by means of Mopani and Chad E&P), and the
flows in 2020 support a proposed
proportionate consolidation, 2020 PERFORMANCE distribution of $0.12 per share, sustained reduction in Atlantic
excluding Significant items. steam coal prices significantly
Net funding as at 31 December payable in two equal tranches in
Adjusted EBITDA consists of 2020 increased by $1.1 billion to May and September 2021. impairing the economics of coal
Adjusted EBIT plus depreciation $35.4 billion, while Net debt (net mining in Colombia.
and amortisation, including the funding less readily marketable
related Proportionate adjustments. inventories) decreased by $1.7 billion
to $15.8 billion.
2020 PERFORMANCE Our target net debt range is $10-16
Adjusted EBITDA was $11.6 billion, billion, and our target leverage ratio
in line with 2019, and Adjusted EBIT is under two times, through the
was $4.4 billion, an increase of 6%. cycle. By year end, we were within
Commodity prices were highly these target ranges. Business
volatile in the year, with the initial conditions in early 2021 and our
impact of the pandemic leading to focus on cash generation, are
multi-year lows. These reversed in supportive of continued
the second half, with base metals deleveraging towards the lower end
prices increasing well above their of the range in the medium term
pre-Covid levels. and a leverage ratio closer to 1x.

Strategic priorities
Our strategy for a
sustainable future
Page 10
Responsible production Responsible portfolio Responsible
and supply management product use Financial review
Page 44
Non-financial key performance indicators

Safety: Total recordable injury Water withdrawn Carbon emissions Community investment
frequency rate (TRIFR) (million m3) (Scope 1 and 2) (US$ million)
1,027 95
(per million hours worked) (million tonnes CO2)
2.65 24.3
3.18 1,020 1,017 1,027 95 95
30.5 90
2.86 29.2
2.65
24.3
11.7 11.0
9.3
18.8 18.3 15.0
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
Scope 1
Scope 2
Links to strategy Links to strategy Links to strategy Links to strategy
DEFINITION DEFINITION DEFINITION DEFINITION

We believe that every work-related Water withdrawal is a measure of Our CO2 emissions reporting is Community investments are
incident, illness and injury is our operational resource efficiency. separated into Scope 1 and Scope 2 our contributions to, and
preventable and we are committed Our operations have an ongoing – location-based emissions. Scope 1 financial support of, the broader
to providing a safe workplace. responsibility to increase the reuse (measured in CO2e) includes communities in the regions
TRIFR is the sum of fatalities, lost of processed and use of recycled emissions from combustion in where we operate.
time injuries, restricted work injuries waste water in order to reduce owned or controlled boilers, Funds are set aside to support
and medical treatment injuries per our impact on local water supplies. furnaces and vehicles/vessels initiatives that benefit communities
million hours worked. The metric Recycled water is predominantly and coal seam emissions and local sustainable development.
represents all injuries that require used in place of fresh water for (direct emissions). We also make in-kind contributions,
medical treatment beyond first aid. processes such as dust suppression. Scope 2 – location-based emissions such as equipment and
(measured in CO2) applies the grid management. We support
2020 PERFORMANCE 2020 PERFORMANCE emission factor to all our purchased programmes for community
During the year, total recordable In 2020, we withdrew slightly more electricity, regardless of specific development, enterprise and
injury frequency rate (TRIFR) was water than the year before, 1,027 renewable electricity contracts job creation, health, education
lower than the previous year at 2.6 million m3, compared to 1,017 million (indirect emissions). We monitor and the environment.
(2019: 2.9). m3 in 2019. and report both the direct and
While our year-on-year TRIFR We are working on improving our
indirect emissions generated by 2020 PERFORMANCE
the industrial activities, entities In 2020, we spent $95 million
decreased, we did not make our understanding of our water
and facilities where we have on community development
ambitious five-year target of a 50% footprint and minimise our
operational control. programmes, of which $19 million
reduction of Group TRIFR by the water-related impacts. We prioritise
end of 2020 against a 2014 baseline efficient water use, water reuse/ was spent on Covid-19 related
of 5.02 – the baseline includes Viterra recycling, responsible waste water
2020 PERFORMANCE initiatives (2019: $90 million).
(previously known as Glencore disposal and maintaining any We have exceeded our 2020 target
Agriculture). We have fed the equipment that may pose a hazard of reducing Scope 1 and 2 emissions
learnings from how we improved to water quality. We engage with intensity by 5% compared to the
our performance into the work we local water users to avoid material 2016 baseline, with a 13.2% reduction
have undertaken on reviewing and adverse impacts on the quality and achieved.
revising our SafeWork initiative. quantity of water sources or We achieved the reduction of our
compromising their access to water. carbon intensity through a range
of measures, including operational
abatement and production
changes, as well as lower coal
seam emissions due to the closure
of a coal underground operation
in Australia.
Going forward, we will report
annually on progress against our
new target of a 40% reduction on
Scope 1, 2 and 3 emissions by 2035.
Non-financial indicators includes information and data from our industrial activities, including only assets where we have operational control, and excluding investment, marketing
and holding companies.

SECTION 172 STATEMENT AND
STAKEHOLDER ENGAGEMENT
The Board upholds the need for transparent and constructive

stakeholder engagement and consultation.
Statement regarding Section 172 of
We operate assets in 35 countries and have around 145,000
the UK Companies Act 2006 and colleagues (including contractors). Engaging and responding
our commitment to transparent and to all of our stakeholder groups, regardless of their location or
opinion, is fundamental to how we operate.
constructive dialogue with all of
Stakeholder scrutiny supports the maintenance of the high
our stakeholders standards of business conduct that is vital to our corporate culture
The UK Corporate Governance Code (the Code) requires and the long-term success of the Group.
the Board to understand the views of the Company’s other A central task of the Board and its Committees is to oversee
key stakeholders and report how their interests and the a strategy that can achieve lasting success and generate
matters set out in section 172 of the UK Companies Act sustainable returns for business, while maintaining our licence
2006 have been considered in Board discussions and to operate (see page 93 regarding Board activities)
decision-making.
To enable this and ensure stakeholder considerations are reflected
During the year, the Directors consider that they have acted in our decision-making, we have standing agenda items for Board
in a way, and have made decisions that would, most likely and Committee meetings that reflect our different stakeholder
promote the success of the Group for the benefit of its groups’ interests.
members as a whole, with particular regard for:
Unfortunately, as a result of the global pandemic, some planned
• the likely consequences of any decision in the long term: interactions between the designated Non-Executive Directors
see Investment Case on page 5, Business Model on page and our workforce had to be curtailed. However, virtual town hall
8, and Risk Management from page 70 meetings were organised, giving our workforce the opportunity
• the interests of the Group’s employees: see Our People to engage directly with them (see page 29 for more details)
section from page 27 and Ethics and Compliance section
from page 38
• the need to foster the Company’s business relationships
with suppliers, customers and others: see section below
where we detail our Stakeholder Engagement
• the impact on the Company’s operations on the
community and environment: see our Sustainability
section from page 32 and our Sustainability Report to be
released in April this year, Climate section from page 16
and Risk Management section from page 70
• the desirability of the Company maintaining a
reputation for high standards of business conduct:
see our Ethics and Compliance section from page 38
and Risk Management section from page 70
• the need to act fairly between members of the
Company: the Corporate Governance section from
page 90 which outlines the material ways in which
the Board and management interact with and
communicate to shareholders
When discharging their duty under Section 172, the
Directors have focussed on mapping out the Company’s
key stakeholder groups and reviewing our level of
engagement with them.
The following pages outline our key stakeholder groups,
how we interact with them and how the Board considers
their interests and opinions during its discussions and
decision-making processes. As a global resources
The Board remains focused on its stakeholder awareness business, we recognise
and strengthening its understanding of the broad range that robust, respectful
of views expressed by Glencore’s stakeholders. and two‑way relationships
with stakeholders are
essential for our social
licence to operate

Stakeholder Engagement
HOW THE WHAT THE

STAKEHOLDER THEIR INTERESTS GROUP ENGAGES BOARD CONSIDERS
Our people • Training, compensation and • Covid-19 engagement • Workforce engagement by

career opportunities • Intranet, emails, newsletter designated Non-Executive
• Health, safety and wellbeing updates Directors
• Company culture and reputation • Posters and leaflets • Periodic updates from the Group
• Industrial relations • Virtual town hall meetings Head of Human Resources
• Asset viability and forums • Results of culture surveys
• Pre-shift ‘toolbox’ talks
• Culture surveys
• Webinars
• Raising Concerns platform
Communities • Local employment and • Community liaison teams • Group HSEC-HR provides the
procurement opportunities • Various meeting formats to Board HSEC Committee with
• Socio-economic development reflect local expectations regular updates on Glencore’s
projects • Radio and television broadcasts impact on the communities living
• Environmental management around its operations
• Social media channels and
• Operational impacts asset’s websites • Asset management provide
details of community
• Potential site closure • Asset-specific publications
considerations as input into
• Tailings storage facilities
Directors’ discussions on
• Security and its engagement operational matters
with civil society
• Review and approval of revised
• Artisanal and small-scale mining approach on ASM
(ASM)
Investors, • Financial and operational • Regular calls, one-on-one • Results meetings

financial performance meetings and group events/ • AGM
analysts • Climate change presentations • Meetings with shareholders,
and media • Compliance with laws • Corporate Affairs teams regularly analysts and key media
• Presence in developing countries speak to media at global, • Group Investor Relations
national and local levels provide analysts’ reports
• Tailings storage management
• Site visits (Covid permitting) and investor feedback
• Transparent payments to
government • Webinars and online Q&A • Following any major
sessions announcements, Group
• Human rights
• Annual report, sustainability Corporate Communications
• Industrial relations
report, modern slavery provides feedback to the Board
statement, payments to • Board resolution on Climate
governments report and other Change – see page 92
reports and presentations
• AGM
• Website, social media channels,
media releases, listing regulatory
announcements

SECTION 172 STATEMENT AND STAKEHOLDER ENGAGEMENT
continued
Stakeholder Engagement continued
HOW THE WHAT THE

STAKEHOLDER THEIR INTERESTS GROUP ENGAGES BOARD CONSIDERS
Governments • Tax and royalty payments • Provide information and updates • Reports on material of regulatory
and regulators • Compliance with laws on key topics, either directly or as issues and emerging legislation
and regulations part of industry associations • Reports on engagement with
• Local employment and • Participation in multi- governments and regulators
procurement stakeholder organisations,
• Operational environmental initiatives and roundtables, such
management, including as the Voluntary Principles on
tailings storage Security and Human Rights, the
OECD and the EITI
• Climate change
• Direct engagement with
• Socio-economic
national, regional and local
development projects
government on key topics
• Transparency and human rights
• Site visits
• Public health
• Public reporting
• Security
Suppliers and • esponsible sourcing and supply

R • Regular meetings and updates • Oversight of the implementation
customers • Transparency in the supply chain • Customer site visits of the Group Supplier Standards
• Procurement spend (Covid permitting) • Discussions as to relationships
• Human rights • Participation in commodity- with and comments from
specific responsible sourcing suppliers and customer
• Compliance with laws
and regulations initiatives
• Competitive pricing • Local procurement initiatives
• Performance
Unions • Health, safety and wellbeing • R egular meetings with asset • P

eriodic updates from the Group
• Negotiation of workplace management Head of Human Resources on
agreements • Union participation in asset material workforce issues
• Industrial relations safety committees
• Asset viability
NGOs and civil • uman rights

H • D irect engagement with • G roup Sustainable Development
society groups • Tailings storage facilities global and local NGOs and provides regular updates to the
• Social incidents civils society groups Directors on the opinions and
• Sustainability Reporting, activities of NGOs and civil
• Public health
including Sustainability Report, society groups
• Operational and environmental
Modern Slavery Statement, • Regular discussions on major
management
Payments to Government issues of concern to NGOs
• Socio-economic development
Report, Human Rights Report and civil society groups and
projects
• Social media channels engagement with them.
• Transparency in payments
and corporate website
to governments
• External forums and
• Security and its engagement
organisations, such as the
with civil society
Voluntary Principles on Security
• Compliance with laws and Human Rights, the OECD
and regulations and the EITI

OUR PEOPLE
Our employees and contractors are fundamental to our success.
At Glencore, our people are at the heart of everything we do.
We foster an environment where our different backgrounds,
cultures and beliefs are supported and encouraged
PURPOSE AND VALUES IN ACTION Chinese, Sepedi and Tswana, and feature a broad cross-section of
our workforce from different geographies, with a mix of those
We are proud of the contribution our 145,000 employees and
from office-based and operational roles from our industrial and
contractors make to our business and to their communities. Our
marketing businesses.
unique business model empowers our people to take commercial
decisions aligned to the broader goals of our company and To reach employees at the assets, many of whom are not
we strive to encourage a high-performance culture where connected to the online Group network, these materials were
accountability and performance are recognised and rewarded. complemented at our assets with posters, banners and
newsletters, both printed and digital, which promoted the
In an increasingly complex world, we recognise the hugely
campaign along with a new intranet hub and a new Purpose and
important role our Purpose and Values can play in helping
Values section on our external website. The films were shown, and
to guide and manage our business and our people. This year,
posters displayed, in muster rooms and office communal areas
perhaps, more than any other has taught us that having an
while the book has been widely printed and distributed and
aligned Purpose and set of Values is invaluable in ensuring
posted to some employees’ homes. The campaign’s key messages
our organisation and our teams react in an appropriate fashion
have also been incorporated into a number of teams’ regular
when faced with uncertainty and complexity.
‘toolbox talks’. Many teams have also adapted the messaging and
During the year, we have placed considerable emphasis on created local materials such as notebooks, calendars, and playing
reinforcing both our Purpose and our Values throughout the cards for use by employees during their breaks.
organisation. To engage approximately 145,000 employees and
contractors across the business around these principles, we POLICIES
launched a Group-wide internal communications and employee We have further strengthened the connection between our
engagement campaign in November 2020 – the biggest of its Purpose, Values and governance framework. We have reviewed
kind undertaken by the Company to date. The campaign aims and amended our Group Human Resources policies to ensure
to foster discussion about the Group’s culture, further embed alignment to strategy and to strengthen consistency of
expectations and develop behaviours on how we do business application across the world. The Company is preparing two
in alignment with our Values. new Group policies governing Human Resources issues with
The first phase focused on the ways our Purpose and Values a condensed and clearer set of commitments, namely:
shape our culture and explored what they mean to our people. • the Equality of Opportunity Policy, and
The next phases will unpack the commitments and expectations
• the Diversity and Inclusion Policy.
of how we do business as laid out in our refreshed Code of Conduct.
To ensure that our people understand what is expected of them The Equality of Opportunity Policy will set out Glencore’s belief
wherever they are based and whatever they do, the Purpose and in, and commitment to, fairness and equality. The policy will
Values phase of the campaign has been consistent in its high- make our expectations of high performance and individual
level messaging but adapted where necessary to serve local contribution explicit, but will also provide details on how we
needs and objectives, allowing for regional and cultural differences ensure our processes are fair, transparent and free from unlawful
across our diverse operations. discrimination. The policy will also provide a global commitment
to mechanisms such as grievance processes to assist in resolving
The communication materials to support the campaign were
complex employee relations issues.
produced in a number of languages from English and German, to
The Diversity and Inclusion Policy will set out our commitment
to diversity of thought, our belief in constructive challenge and
our desire to create an inclusive culture. It will provide a
commitment to monitoring our demographic make-up,
educating ourselves on issues of bias and equal pay for equal
work in each of our companies.
These policies will be published on our website to ensure
transparency and accountability.
Over the course of the next year, these global policies will be
underpinned by a set of global people standards which will
increase the consistency of practices and employee experiences
across the world.
CEZinc donated 2,000

masks for the nursing
staff at the local Suroît
Regional Hospital

OUR PEOPLE
continued
We surveyed the day-to-day

experience of 20,000
employees, their satisfaction
with their roles and career
development, including
safety and ethical behaviour
MONITORING OUR CULTURE AND LISTENING TO

EMPLOYEES Our Values and Culture survey
We continue to develop and evolve our mechanisms to evaluate
our culture and understand employee experience across our
operations. Following 2019’s successful survey of our marketing
employees and our Australian businesses, this year our Employee
Survey was distributed globally to our networked employees for
the first time. 30,000 employees from 35 countries were invited
82% 87%
to participate. Our Values and Culture score of surveyed employees told
of 82% tells us that the vast us that they intend to stay
Our survey measured the day-to-day experiences of our majority of our employees at least 12 months with
employees; their satisfaction with their roles and career feel their experience matches the company
development as well as vitally important concepts such as our values
safety and ethical behaviour – key elements which underpin
our strategy and our reputation as a responsible and ethical
operator. We measure employee engagement through an
engagement score and benchmark this score across our
businesses, against an external high-performance benchmark
92% 86%
and against large scale industrial businesses. Our scores were of surveyed employees of surveyed employees
stating that they work stating that they are proud
very positive with employee engagement scoring 85% against
in a safe environment to work at Glencore
our external benchmarks of 81%.
We have invested considerable time and resources in our Ethics
and Compliance programme over the last number of years.
The survey provides an opportunity to test the impact of this
programme on the ground and our scores benchmark well and
94% 88%
are in many areas above the benchmarks of externally recognised of surveyed employees of surveyed employees
surveys like the Institute of Business Ethics’ European Survey of feeling comfortable reporting stating that their direct
a safety concern, a key manager acts ethically and
Ethics at Work.
enabler of improvement in in compliance with policies
our performance

sessions enabling local management to continue the

Additionally, we have created a Values and Culture Index to momentum and highlight areas which will resonate with their
measure the extent to which our employees’ experiences local teams.
match our values. Our Values and Culture index is made up
of 14 questions and covers topics designed to understand A REFRESHED CODE OF CONDUCT IN 2021
whether our values are brought to life each day and the The Purpose, Values and Code of Conduct engagement
extent to which our culture addresses critical issues such as campaign has continued into 2021 and will culminate with
safety, business integrity and compliance. The index also the launch of our refreshed Code of Conduct later in the year.
analyses whether our people feel that they are treated fairly The Code has been revised to reflect updated expectations for our
and with respect and whether they feel their business people, the importance of ethical decision making and provide a
communicates well and is being run efficiently. clear reference point for our supporting policies.
The Code is designed to be accessible and reflect the evolving
expectations for businesses.
EMPLOYEE ENGAGEMENT BY BOARD AND SENIOR
MANAGEMENT As part of the campaign, we will be running a series of virtual
events during 2021, featuring the insights and expertise of
As well as raising awareness of our Purpose and Values, the internal and external speakers, which are intended to encourage
campaign focused on facilitating engagement between a conversation across the Group as we further explore what it
members of our management, Board and front-line workers. means to work at Glencore.
To achieve this during a time of pandemic and restrictions
on travel, a number of our non-executive directors engaged TALENT AND DEVELOPMENT
our workforce at our operations and offices via virtual town We believe that commodity and technical specialisation are key
hall meetings. drivers of value and performance and therefore training and
During these sessions, they took questions, listened and development is aligned to this need for specialisation. This year,
responded to the viewpoints and issues raised. in addition to the regular training curriculum across our assets
we have commenced a relationship with the International
With support from Tony Hayward, Peter Coates, Patrice Merrin, Gill
institute for Management Development (IMD) to develop a
Marcus and Kalidas Madhavpeddi, sessions were held in Australia,
comprehensive Leadership Development offering for our General
Canada, Peru and South Africa in collaboration with local
Managers in the Zinc division. The modular programme will
management. Further town hall meetings are scheduled for 2021
enable clear communication of the Zinc Industrial strategy,
to facilitate further direct engagement with employees.
provide an opportunity to share best practice across the group
Glencore’s CEO Ivan Glasenberg held a live-stream in December and enable us to leverage IMD’s expertise in technical and
during which he also answered questions from employees, and financial matters but also equip our leadership with the skills
talked about the Group’s culture, articulating how it plays a central and competencies to manage the operational complexity and
role in the company’s continued success. increasing ESG requirements applicable to their businesses.
The opportunity to connect with the Board and senior
management has been received positively across the Group.
These sessions have also been supplemented by locally led
We believe in empowering
our leaders and our people
to drive the performance of
our business

OUR PEOPLE
continued
SOUTH AFRICAN COMMUNITY TRAINING PROGRAMME Diversity
Glencore SA offers a number of training and development opportunities to members

of communities surrounding its operations in the Emalahleni and Steve Tshwete Local
87,822
employees at 31 December 2020
Municipalities of the Mpumalanga Province in South Africa. The programs are aimed at
empowering members of the local communities with skills and qualifications to enable 2019: 89,092
them to be employable both within Glencore and within the mining industry in general 2018: 86,621
as well as skills to operate outside the mining industry or independently operating their
own businesses. Programs aimed at equipping members of the community with the
skills and qualifications to be employable within the Company and the industry include
the Blasting Assistant Program, the Operator Training Program and the Engineering 56,300
contractors at 31 December 2020
Learnership Program.
The Engineering Learnership Program is undertaken over a period of up to three years 2019: 70,253
and on completion, the participants end up with a trade qualification as either an 2018: 71,887
Electrician, Auto Electrician, Boilermaker, Diesel Mechanic or Fitter. Upon completion,
the candidates are considered for permanent placement into available positions within
Employee diversity in 2020
the business. Where such opportunities are not available, their information is provided
● Male 84%
to other potential employers in the area. They are also put on the waiting list for ● Female 16%
absorption as and when opportunities arise within the business.
During 2020, a total of eighty seven (87) candidates from the community participated in
the Engineering Leadership Program. In an effort to enhance the representation of
women in technical disciplines including engineering, a focus has been placed on
increasing the intake of women into the program and the 2020 intake had a female
representation rate of 75%.
GRADUATES AND APPRENTICESHIPS 2019: 16% female – 84% male

Maintaining a supply of engineering and geological talent is a priority for our Human 2018: 15% female – 85% male
Resources teams around the world. The numbers of students choosing these careers has
declined in recent years in some geographies and therefore our talent sourcing strategy Senior manager* diversity in 2020
has greater emphasis and focus on school leaver and apprentice programmes alongside
● Male 87%
traditional graduate recruitment in many jurisdictions. It also includes direct engagement ● Female 13%
with educational institutions and active participation in collective industry efforts.
In Australia we are active in initiatives facilitated by the NSW Minerals Council including
the Pathways to Resource Industry and Mining Employment (Prime) ‐ a two‐year
partnership between the Council and Regional Development Australia to implement
industry‐skilling and workforce development initiatives to enhance awareness of the
mining industry and its career opportunities.
The Queensland Minerals and Energy Academy is a partnership between the
2019: 13% female – 87% male
Queensland Government and the Queensland Resources Council which provides a
2018: 16% female – 84% male
pipeline of employees into the resources sector. During 2019, Glencore was engaged in 16
events, involving 25 Glencore representatives, 302 student engagements (41 percent girls) * a senior manager as defined in section 414C
and 17 teachers. Glencore Australia is also active as a lead sponsor of the QMEA Girls of the UK Companies Act 2006 to include
members of the management team and
Mentoring Program.
Glencore appointed directors on the boards
of subsidiaries. This definition is only relevant
to this data and does not apply to other
references of “senior management” that are
PEOPLE ENABLING TECHNOLOGY AT KIDD OPERATIONS included in this Annual Report.
With the inrush of technology applications in mining, bridging the gap between R&D
and real-world benefits has become quite a familiar topic to Kidd Operations. By
matching existing mining expertise to new generations of tech-savvy personnel entering
mining, we unlock the potential to create value in new ways.
While the site drove R&D efforts to develop the first autonomous LiDAR drone
underground, real success required our forward-thinking engineers-in-training to
tackle the complete workflow, guide the parallel development of new data tools, with
developers entirely new to the mining industry. All areas of the mine, including those
only accessible via autonomous flight, can now be rapidly scanned in ultra-high
resolution, and the results stitched into a combined 3D view of the mine, with minimal
user intervention. This paves the way for advanced planning and geotechnical analysis,
including rendering a precise 3D model of the mine in Holographic Mixed Reality
(currently in MVP phase), allowing all levels of users to interact, understand, and make
quality decisions that drive value.
Whilst safety and productivity solutions above-ground have been using GPS technology
for nearly two decades, underground systems have lagged with limited real time visibility

on production performance data, vehicle interaction, or geofencing. In response,

Kidd launched a project exploring Ultra-Wide-Band (UWB), an emerging localisation
technology, again in the first application in underground mining. Using graduate
engineering talent to tackle not only the hardware adaptation but the inception of the
use-case and the development of the intermediate systems enabled the operation to
turn position data into useable information, far beyond the developer’s intent. With UWB
tags being introduced in mobile phones, this technology is primed for future success.
COVID-19
In response to the increasing spread of the SARS-CoV-2 virus, Glencore established an
Incident Management Team (IMT), in late January 2020. We developed a Group wide
Global Infectious Disease Response Plan which provided the business guidance on key
controls to implement and monitor.
A global Health Advisory service was set up with input and expertise from medical
experts at International SOS. The service provided up-to-date guidance on health
protection measures and also acted as a co-ordination point for collating statistics on
infections at our operations worldwide. Video webinars with medical experts were held
and recordings distributed through the Group intranet in an effort to provide support
and counter mis-information regarding the pandemic and health protection measures.
At our assets and offices around the world, comprehensive changes were made to how
we work to reduce the number of people working on site and other measures to facilitate
social distancing and the monitoring and recording of employees’ health were introduced.
Many of the communities where we operated faced an extraordinary socio-economic
hardship as a result of Covid-19. In April we launched the $25 million Glencore Community
Support Fund as part of our commitment to protect the safety and health of the people
in our host communities.
Further details on our responses to the pandemic is available at:
glencore.com/media-and-insights/Updates-regarding-COVID-19
Emerging talents across the world
North South
America America Australasia Africa Europe & UK Total
Graduate intake 9 17 117 85 13 241
Vacation programmes 82 72 151 67 99 471
Scholarships and Bursaries 59 62 41 312 5 479
Apprenticeships and artisans 51 63 122 281 49 566

SUSTAINABILITY
Responsibility is one of our Values. For Glencore, being a
responsible operator means delivering strong financial,
social and environmental performance through robust
governance, ethical and transparent business practices,
and respect for the rights of all.
OUR APPROACH
Lost time injury Total recordable Water withdrawn
Our approach to sustainability reflects our Purpose to responsibly frequency rate injury frequency (million m3)
rate
1,027
source the commodities that advance everyday life. We establish (per million hours
and implement ethical and consistent business practices and worked) (per million hours
0.94
standards through our health, safety, environment, and worked)
2.65
community and human rights (HSEC-HR) strategy, policies and
standards. We are a responsible operator and aspire to have a
reputation for doing things the right way.
Our approach sets out our ambitions against four core pillars: 3.18
2.86
1,020 1,017 1,027
health, safety, environment, and community and human rights, 2.65
and drives positive change throughout our business. Each pillar

has clearly defined strategic imperatives, objectives, policies,
1.06
priority areas and targets. We review our approach annually to 0.99 0.94
confirm that it continues to fulfil the needs of our business.

Governance of our Group sustainability strategy and framework
2018 2019 2020 2018 2019 2020 2018 2019 2020
rests with the HSEC Committee of the Board. Our senior
management team, including the CEO and commodity
CO2e Scope 1 CO2 Scope 2 – Community
department business heads, are accountable for overseeing
(million tonnes) location based investment
the implementation of our HSEC-HR strategy.
15.0
(million tonnes) (US$ million)
Further details on our HSEC-HR strategy, our approach to its
implementation, as well as its performance and ambitions, are
available in our sustainability-related publications. These include 9.3 95
an annual sustainability report published in accordance with the
core requirements of Global Reporting Initiative (GRI), as well as 18.8 18.3 95
90
95
the following publications: 15.0
11.7
• Sustainability highlights 11.0
9.3
• Payments to governments report
• Modern slavery statement
• ESG A-Z section on our website (www.glencore.com)
• Water microsite 2018 2019 2020 2018 2019 2020 2018 2019 2020
ENGAGING WITH OUR STAKEHOLDERS

We engage with relevant stakeholder groups to build meaningful
relationships and understand their expectations and aspirations.
Further information on our stakeholder engagement activities is
available on page 24.
EXTERNAL COMMITMENTS
We participate in a wide range of external initiatives, supporting
our commitment to continuously improve our approach and
performance across sustainability topics. Our engagement
varies from reporting on our progress to taking a role in driving
strategic change.
We are signatories to the United Nations (UN) Global Compact
(GC), aligning our strategies and operations with its principles,
which cover human rights, labour, environment and anti-
corruption. We recognise the UNGC’s Sustainable Development
In 2020, we announced a
Goals (SDGs) and their systematic global approach to society’s
1.5ºC-aligned target of an
overall development. We believe that we can play a role in
absolute 40% reduction of
supporting our host governments to meet the SDGs.
total emissions by 2035 on
2019 levels and ambition of
All of our sustainability communications are available achieving a net zero total
on our website: glencore.com/sustainability emissions footprint by 2050

Sustainability framework
Corporate strategy
Responsible production Responsible portfolio Responsible

and supply management product use
Values
Safety Integrity Responsibility Openness Simplicity Entrepreneurialism
Code of Conduct
Group sustainability strategy
Health Safety Environment Community and

Become a leader in Become a leader in Become a leader in human rights
protecting and safety and create a environmental Foster socio-economic
improving the wellness workplace free from performance resilient communities
of our people and fatalities and injuries and respect human
communities rights everywhere
we operate
Material topics Board HSEC Committee

Group HSEC policies (the Committee) has
• Internal and external oversight and ultimate
materiality assessment responsibility
process to identify The Committee receives
material topics regular updates and has
Operational policies oversight of how our
• Material topics are the
focus of our sustainability business is performing
Developed for the specific across all our internally
strategy review needs of individual assets
and reporting defined, sustainability
related material risk areas
• Operational activities
focus on addressing Sustainability principles,
and progressing the guidance and policies
material topics Management, data
reporting, risk Integrated throughout
management the business and give
and assurance to guidance on the
monitor compliance standards we expect
We uphold the International Labour Organization (ILO) include the consortia for zinc, cobalt, cadmium, sulphuric acid,
Declaration on Fundamental Principles and Rights at Work, the lead and precious metals.
UN Universal Declaration of Human Rights, and the UN Guiding
Our responsible sourcing strategy considers production, sourcing
Principles on Business and Human Rights.
of metals and minerals and procuring goods and services. Our
We are members of the Plenary of the Voluntary Principles on Supplier Standards form the basis of our risk-based supply chain
Security and Human Rights. due diligence programme and references the Organization of
We have been a member of the International Council on Mining & Economic Cooperation and Development’s Due Diligence
Metals since 2014. We endorse its Mining Principles and are active Guidance for Responsible Supply Chains of Minerals from Conflict-
in its working groups. Affected and High-Risk Areas.
We strongly support transparency in the redistribution and RISK MANAGEMENT AND ASSURANCE
reinvestment of the payments we make to local and national
governments. We are active participants, both in our operating Our management of HSEC-HR-related risks aligns with Glencore’s
countries and at a global level, in the Extractive Industries approach to the identification, assessment and mitigation of risk.
Transparency Initiative (EITI). We comply with the EU Accounting Our assets use the risk framework to identify hazards, including
and Transparency Directives; in line with those provisions, we those with potentially major or catastrophic consequences, and to
publish separate annual reports detailing material payments develop plans to address and eliminate, or mitigate, the related
made to governments, broken down by country and project. risks. For each of the identified catastrophic hazards we have
implemented a standardised approach to identifying and
As part of our commitment to responsible product stewardship, understanding their causes and controls.
we follow the UN globally harmonised system for classification
and labelling of chemicals (GHS), the EU REACH regulations on Our internal HSEC-HR assurance programme primarily focuses
the registration, evaluation, authorisation and restriction of on our systematic management of the catastrophic hazards and
chemicals, and the London Bullion Market Association their controls. Internal and external senior subject matter experts
Responsible Gold guidance. Where appropriate, we participate in participate in this programme.
the REACH consortia related to the materials we produce; these

SUSTAINABILITY
continued
Performance overview Achieved On track Not achieved Not applicable
Material topic 2015–2020 strategic priority Performance indicator 2020 2019 Status
Catastrophic hazard • No major or catastrophic incidents Number of incidents 0 0

management (major and catastrophic)

Workplace health • No fatalities Fatalities at managed operations 8 17

and safety • 50% reduction of Group LTIFR by the end of
2020, against 2015 figure of 1.341 Lost time injury frequency rate 0.94 0.99
• 50% reduction in TRIFR by the end of
2020 using 2014 figure of 5.021 as baseline
• Year on year reduction in the number of new Total recordable injury frequency rate 2.65 2.86
cases of occupational disease
New occupational disease cases 111 106
Number of HPRIs reported 399 574

Climate change • 5% (minimum) carbon emission intensity CO2e Scope 1 (million tonnes) 15.0 18.3
reduction on 2016 baseline2 of 4.35
tGHG/tCu by 2020 CO2 Scope 2 – Location based (million tonnes) 9.3 11.0
Total energy use (petajoules) 180 210

Carbon emissions intensity (tGHG/tCu) 3.78 3.93
Human rights and • No serious human rights incidents Serious human rights incidents 0 0
grievance
mechanisms
Community • Implement our social value creation strategy Community investment spend ($ million) 95 90
engagement and • Distribute the community leadership
social commitment Programme Toolkit
compliance
Product stewardship • Ongoing engagement with organisations and Continued engagement with a broad range of n/a n/a
interested stakeholders on responsible stakeholders, including customers, regulatory
sourcing organisations and industry associations
1 Baseline figures include Viterra (formerly Glencore Agriculture)

2 The baseline is for operated industrial assets and amended to reflect acquisitions and divestments
Multi-disciplinary assessments allow us to audit complex issues financial damage. We are committed to eliminating catastrophic
from a range of viewpoints for a more robust appraisal. We use incidents at our assets.
the assessments to review operations and activities with different We recognise the exceptional nature of such events and we have
risk factors, such as underground operations, open pit mines and developed specific programmes to actively identify, monitor and
metal processing plants. mitigate catastrophic hazards within our business. Our Group
The HSEC Committee reviews the results of all the audits, together Catastrophic Hazard and Fatal Hazard Management Policy
with their key findings, observations and good practice. specifies our approach to their management.
We review our catastrophic risks to understand whether they
MATERIALITY ASSESSMENT
are adequately controlled. We require our assets to put in place
We regularly undertake a sustainability-related materiality appropriate management and mitigation measures. Our
assessment that considers input from within our business and assurance on catastrophic hazards is developed in line with our
from other stakeholders. We use this assessment to inform the Group-wide catastrophic hazard programme. The Board receives
HSEC-HR strategy and our reporting. The assessment identifies and reviews all assurance findings.
topics that are material to our development, performance and
Our HSEC audit programme focuses on catastrophic hazards and
current position as well as for our future prospects. It also
critical control management, using both internal and external
establishes the material topics for our sustainability strategic
expert assessors. It gives particular attention to identifying
review and publications.
catastrophic hazards, their critical controls and management
We identified the following material topics for the 2019–20 period: plans, as well as the effectiveness of verification and reporting
catastrophic hazards, safety and health, climate change and processes.
energy (see page 16), water, land stewardship, responsible
sourcing and supply, human rights, social performance and our Managing our tailing storage facilities
people (see page 27). Tailings, the fine waste materials left over after the processing
of ore, are stored in tailings storage facilities (TSFs). In recent years,
OUR MATERIAL TOPICS
a small number of high-profile TSFs failures at the operations of
CATASTROPHIC HAZARD MANAGEMENT large mining companies have resulted in catastrophic
We define catastrophic events as those with a low probability but consequences.
severe consequences that could cause widespread loss of life or
We monitor our TSFs for integrity and structural stability. Our
significant environmental harm, or result in major reputational or
assets evaluate natural phenomena and incorporate these

considerations into their tailings facility designs where relevant. During the year, both our lost time injury frequency rate1,2
Flooding and seismic activity are the main natural phenomena (LTIFR) and total recordable injury frequency rate3 (TRIFR)
that may affect TSFs. In addition, our TSFs undergo regular were slightly lower than the previous year at 0.94 (2019: 0.99) and
external inspections. 2.6 (2019: 2.9) respectively.
We continue to manage closed TSFs responsibly post-closure. While our year-on-year LTIFR and TRIFR decreased, we did not
We regularly inspect our facilities and external experts conduct make our ambitious five-year targets of 50% reduction of Group
independent inspections and reviews. LTIFR by the end of 2020 against a 2015 baseline4 of 1.34 and 50%
reduction of Group TRIFR by the end of 2020 against a 2014
Performance during 2020 baseline4 of 5.02. We are using the learnings gained from
We target zero major or catastrophic incidents, which we improving our performance into the work we are undertaking
achieved during 2020. on reviewing and revising our SafeWork initiative.
In 2020, we entered into an agreement with a leading global In 2020, our high potential risk incidents (HPRIs) fell to 399
provider to extend satellite monitoring to over half of our facilities, (2019: 574). The reporting of HPRIs represents a supportive part
prioritising on a basis of consequence classification. This is the of our strategy to reduce fatalities and, as such, we do not target
largest industry agreement to date for specific satellite monitoring a reduction in this metric. They allow the identification of activities
of TSFs. that we need to prioritise in order to advance further our learning
In 2020, the Global Tailings Review, made up of the ICMM, UN and safety performance. The majority of HPRIs related to mobile
Environmental Programme and Principles for Responsible equipment and working at height and nearly 80% resulted in
Investment, published a new Global Industry Standard on Tailings no injuries.
Management (the Standard). We recorded a slight increase in the number of new cases of
In August 2020, all ICMM members, including Glencore, occupational disease, 111 cases (2019: 106).
committed to implement the Standard. All of our TSFs with
WATER
“Extreme” or “Very high” potential consequences will be in
conformance with the Standard by 5 August 2023. All of our Water is an essential resource for many of our industrial activities.
other TSFs not in a state of safe closure will be in conformance Some of our assets are located in areas with high to extremely
with the Standard by 5 August 2025. high water baseline stress and share access to water with other
local water users. Other assets manage surplus water that may
Further information is available on our website (glencore.com/
involve dewatering activities and flood protection measures.
sustainability/Tailings). It includes an overview of our approach
Regardless of their location, our assets undertake detailed
towards managing TSFs and provides details on a total number
assessments of their local environmental conditions during the
of 215 individual tailings dam walls representing approximately
operational changes in lifecycle, to develop water management
122 TSFs.
strategies that maximise the efficient and sustainable use of this
SAFETY AND HEALTH important natural resource.
In line with our company values, our first priority in the workplace We recognise access to safe and clean water and sanitation as a
is to protect the health and wellbeing of all of our people. Our goal salient human right. We seek to fully understand and minimise
is continuous improvement in the prevention of occupational our operational water footprint and manage our activities in
disease and injuries. a way that protects our shared water resources. We are
committed to ensuring good water management is in place
We take a proactive, preventative approach towards health and
at all of our assets and undertake detailed assessments, target
safety. We believe that all fatalities, injuries and occupational
setting, monitoring and implementation of corrective actions.
diseases are preventable. Through strong safety leadership, we
Our assets consult their host communities and other relevant
can create and maintain safe workplaces for all our people. A large
local water users to understand local priorities and to collaborate
number of our assets have been fatality free for multiple years.
on sustainable solutions.
We require an effective safety management system at each asset
to assure the integrity of plants, equipment, structures, processes Performance during 2020
and protective systems, as well as the monitoring and review of In 2020, we withdrew 1,027 million m3 of water (2019: 1,017 million
critical controls. m3). The small increase in withdrawn water is primarily due to
Our SafeWork initiative supports changing attitudes towards improving the calculation methodology at a smelter that utilises
safety and bringing about long-term sustainable change that seawater for cooling purposes.
supports the elimination of fatalities and serious injuries. The During 2020, we furthermore established a global working group
initiative’s aim is to provide everyone within our business with the of internal subject matter experts to develop internal and external
knowledge and tools to perform every task safely. In 2021, we will targets for water management and continued our participation in
relaunch SafeWork as part of our fatality reduction programme. the ICMM water working group.
Our occupational health management strategy addresses the
health risks facing our workforce, their families and the
LAND STEWARDSHIP
communities inside and outside our gates. We use a variety We are committed to managing our land in a productive and
of onsite programmes to manage occupational diseases and sustainable manner ensuring proactive stewardship of our
exposure to health hazards; we extend many of these health landholdings, including those that have not undergone
programmes to our host communities, to combat regional industrial activity. We align our approach to cultural heritage
health problems and promote healthy lifestyles. and archaeologically sensitive locations on our landholdings
with local regulatory requirements and best practice. We respect
Performance during 2020 legally designated areas and commit to neither mine nor explore
We are saddened to report the loss of eight lives at our operations in World Heritage Sites.
during 2020, compared to seventeen during 2019. All loss of life is We require our industrial assets to implement land stewardship
unacceptable and we are determined to eliminate fatalities across management systems, including progressive land rehabilitation
our business. target setting tied to life of asset planning, that includes standard
1 Lost 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 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.
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.
4 Baseline figures include Viterra (previously known as Glencore Agriculture).

SUSTAINABILITY
continued
elements such as an environmental policy, data collection and working group that developed the new lCMM Closure Maturity
monitoring, adaptive management, and continuous improvement. Framework tool, which we piloted at six of our global assets.
We are committed to identifying and addressing the potential
RESPONSIBLE SOURCING AND SUPPLY
impacts of our business on ecosystems services and achieving
no net loss of biodiversity through the application of mitigation An integral part of our responsible sourcing approach is supply
hierarchy. We require all operations to develop risk-based chain due diligence (SCDD) for our metals and minerals supply
biodiversity action plans and site-level biodiversity targets, chain. During 2020, we strengthened our internal due diligence
to drive progress in this critical area. management system.
Our guideline sets out our five-step approach to due diligence
Biodiversity that aligns with the OECD’s Due Diligence Guidance for
Mining activities directly impact the surrounding land, flora and Responsible Supply Chains of Minerals from Conflict-Affected
fauna throughout their lifecycle; our goal is to minimise and and High-Risk Areas (CAHRA). Our risk assessment and
manage those impacts. Our assets’ land stewardship and management strategy identifies and assesses risks,
biodiversity management plans can include measures for including those relating to CAHRA. We take a collaborative
preliminary clearing works, habitat relocation, flora and fauna risk management and mitigation approach to the identified
conservation, weed and pest control and fire and grazing human rights risks within our supply chain.
management. Where possible, these plans support the As part of our system of controls and transparency, we have an
continuation of existing land practices, including grazing and online platform that manages due diligence-related information
other agricultural activities. collection and supplier assessment.
As an ICMM member, we commit to not conduct any exploration, We have a system of accountability with identified internal roles
drilling or mining in World Heritage areas and IUCN category I-IV and responsibilities, as well as a dedicated SCDD manager who
protected areas (‘no-go’ areas), and not to put the integrity of such oversees and implements the process. Our responsible sourcing
properties at risk. Our assets work to avoid the loss of any team engages with internal stakeholders to increase awareness
International Union for Conservation of Nature (IUCN) Red List on the responsible sourcing of minerals. During the year, we
threatened species. undertook capacity building activities and training sessions with
our marketing teams.
Rehabilitation
A core component of our operations’ lifecycle is progressive Performance during 2020
rehabilitation. Where active operations have ceased, we review During the year, we rolled out our risk-based supply chain due
opportunities for restoration in the previously operated areas. diligence programme to our cobalt and nickel marketing teams.
Progressive rehabilitation has many benefits, including reducing The assessment did not find any concerns relating to adverse
an operation’s footprint, improving the visual appeal of the human rights impacts in these two commodities’ supply chains.
landscape and reducing dust, erosion and sedimentation, as
We provided input into the drafting of the Joint Base Metals Due
well as improving conditions for local communities and future
Diligence Standard developed by the Copper Mark. The standard
land users.
enables companies to comply with the London Metal Exchange
To support progressive rehabilitation, our assets may excavate and Responsible Sourcing requirements. Our participation enabled us
reserve topsoil and overburden from areas prior to development. to better understand the responsible sourcing requirements of
the LME and should support the leading position of our listed
Closure management
brands in the metals markets.
Unlike many other industrial uses of the land, mining has a finite
In 2020, Glencore did not produce, process or market any “conflict
life and transitions to post-mining land use at the end of its
minerals” originating from the conflict areas as defined under the
operational lifecycle. We require each asset to have a closure plan,
Dodd-Frank Act (tin, tungsten, tantalum and gold from the DRC
including progressive rehabilitation and financial provision, to
and adjoining countries).
support a responsible exit. Assets regularly review their closure
plan to ensure it remains fit-for-purpose, and aligns with the HUMAN RIGHTS
asset’s lifecycle. Assets develop and maintain their closure plan
We have the potential to adversely or positively impact on human
to align with good practice, such as the ICMM’s Integrated
rights directly through our operations, or through our
Mine Closure Good Practice Guide. Assets are required to
relationships with joint ventures, contractors and suppliers. We are
consult with local communities on the development of their
committed to respecting human rights and actively support our
closure plans and monitor the societal risks and opportunities
employees, business partners and others to understand and meet
associated with closure.
this commitment.
Glencore has acquired, through mergers and acquisitions, a
We aim to avoid causing or contributing to adverse human rights
number of older mines and legacy operations. We have a
impacts; to prevent or mitigate adverse human rights impacts
specialised management process for these legacy operations,
linked to our operations, products or services through our
which supports the identification and implementation of
business relationships; and to make a positive contribution to the
appropriate monitoring and responsible restoration.
advancement of human rights of all people, including vulnerable
Performance during 2020 groups. In the event that we cause or contribute to an adverse
impact on human rights, we provide for, or cooperate in, processes
During 2020, we established a global working group of internal
to enable appropriate remedy.
subject matter experts to develop internal targets for biodiversity
and land rehabilitation, as well as enhanced corporate governance We align with relevant international standards to understand,
for land stewardship and biodiversity. The targets reflect the control and mitigate our impacts. Our polices and practice align
diversity of our assets’ locations and activities, and progress with the Universal Declaration of Human Rights, the United
against them will be monitored. Nations (UN) Guiding Principles, the UN Global Compact and
International Labour Organization’s core conventions and we
We mapped our approach to closure against the ICMM’s
articulate these in our Code of Conduct and Group Human Rights
Integrated Mine Closure: Good Practice Guide and have
Policy. In addition, we operate in accordance with the Voluntary
addressed any identified gaps. We participated in ICMM’s closure

Principles on Security and Human Rights, International Finance The new policy reflects our commitments to a range of
Corporation’s Standard 5 on Involuntary Resettlement. international human rights instruments. In addition, we have
We respect the rights, interests and aspirations of Indigenous developed an innovative human rights rating tool to assist us in
Peoples and acknowledge their right to maintain their culture, assessing each asset’s overall human rights risk level. This rating
identity, traditions and customs, and operate in accordance with will inform the minimum management controls to be
the ICMM Position Statement on Indigenous Peoples and Mining. implemented, commensurate with the level of human rights
risk. The tool will be rolled out and tested during 2021.
Our assets are required to conduct regular human rights training
for their workforces, with a focus on those employees in positions SOCIAL PERFORMANCE
exposed to human rights concerns, such as security. This covers
Our activities can make a significant contribution to the national,
general human rights awareness during day-to-day activities for
regional and local economies through the production and
our wider workforce, as well as focused training on the Voluntary
marketing of commodities that provide the basic building blocks
Principles on Security and Human Rights for our security
for development. We provide employment and training, business
employees and contractors.
partner opportunities, tax and royalty payments to governments
Enabling complaints and grievance processes that help provide essential services, socio-economic development
and environmental stewardship.
We operate local level complaints and grievance processes
designed to be legitimate, accessible, predictable, equitable, We aim to avoid harm to people and the environment from our
transparent, rights compatible, a source of continuous learning, activities, respect human rights, contribute to social and economic
and based on engagement and dialogue. Where people have development of affected people and society more widely, and to
complaints or grievances, we aim to investigate and resolve establish and maintain trusting relationships with stakeholders,
them at the local level. Assets are required to investigate and through ethical and responsible business practices.
record all complaints.
Stakeholder engagement
We do not allow any form of punishment, discipline or retaliatory
Our business is geographically diverse, with operations on six
action to be taken against people for speaking up or cooperating
continents, and we adopt an inclusive community approach
with an investigation.
informed by the local context. Some of our businesses operate
Indigenous Peoples in challenging socio-political contexts but we are committed to
working with others to help find and implement solutions to
Some of our assets are located on or near the traditional territories
social issues and to build resilient and peaceful communities.
of Indigenous Peoples. Our approach aligns with the ICMM
Position Statement on Indigenous People and Mining, which We work hard to get to know our local communities and identify
requires mining projects located on lands traditionally owned by the individuals, groups or organisations with an interest in our
or under customary use of Indigenous Peoples to respect business or who are affected by it. We implement a range of
Indigenous Peoples’ rights, interests, special connections to lands engagement activities designed to be relevant and appropriate
and waters, and perspectives. for different stakeholders, including vulnerable groups, including
access to local level complaints and grievance processes (see
ICMM Members must adopt and apply engagement and
Human Rights).
consultation processes that ensure the meaningful participation
of Indigenous communities in decision making, through a Through meaningful stakeholder engagement and integration of
process consistent with their traditional decision-making social performance into our core business, we seek to advance the
processes. We seek, through good faith negotiation, to reach interests and aspirations of both our host communities, broader
agreements with Indigenous Peoples who maintain an interest society and our assets.
in, or connection to the land on which we operate, formalising
Social investment
engagement processes and sustainable benefits.
In addition to our employment, local procurement, taxes
Performance during 2020 and royalties, we seek to make a positive contribution to
During 2020, we commenced an internal campaign to social and economic development of our host communities
strengthen our management of local-level complaints and and society more broadly through our voluntary social
grievances. We conducted a Group-wide desktop review of local investment programmes.
processes against the United Nations effectiveness criteria. Areas Our strategic objective is to do this in a way that builds resilient
for improvement were identified and assets have a target to close communities and regions by reducing dependency on our
these gaps by the end of 2021. operations. This is challenging when the immediate, short-term
To support improved understanding of challenges and good needs in many of our communities are high. This was the case
practices in the implementation of grievance processes, we during 2020 when we responded to requests for health and
conducted an interactive webinar series in early 2021. Over 150 medical equipment in many of our host communities during
operational managers and social, environment and legal the initial stages of the Covid-19 pandemic. However, our aim is
professionals attended the sessions that spanned seven to focus our efforts on developing programmes that contribute
geographical regions and four languages. to longer-term social objectives through activities such as
enterprise and job creation, education, health and wellbeing
Following events in Western Australia in 2020, where mining
and capacity building.
activities impacted on significant cultural heritage, we undertook
an internal review of our own heritage risks, with the intent of Our socio-economic development activities are founded on
addressing any deficient areas during 2021. The review was the resources, needs and plans identified at a local or regional
supported by independent cultural heritage experts. level, and are informed by relevant data gathering and
community engagement.
In Australia, our Indigenous Relations and Cultural Heritage
Working Group is also working on strengthening our Performance during 2020
engagement with Indigenous Peoples.
In 2020, we spent $95 million on community development
In addition we commissioned a report benchmarking cultural programmes, of which $19 million was spent on Covid-19 related
heritage legal and regulatory frameworks in countries where we initiatives (2019: $90 million).
operate against international standards. Earlier this year, we
During the year, we reviewed and updated our Social
reviewed and updated the Group Human Rights Policy. We have
Performance Policy.
developed a human rights risk rating tool to strengthen a
consistent approach to human rights impact assessments. The All of our sustainability communications are available on our
Tool aligns with our identified salient issues for human rights and website: glencore.com/sustainability
will be rolled out in 2021.

ETHICS AND
COMPLIANCE
We fulfil our purpose and remain a business partner
of choice by upholding our commitment to ethical
business practices
OUR APPROACH suppliers, including expectations regarding ethical business

We are committed to maintaining a culture of ethics and practices. We assert our influence over joint ventures we don’t
compliance throughout the Group, rather than simply performing control to encourage them to act in a manner consistent with
the minimum required by law. We do not knowingly assist any our Values and Code.
third party in breaching the law, or participate in any criminal, BOARD AND MANAGEMENT OVERSIGHT
fraudulent or corrupt practice in any country. AND SUPPORT
To support this, our Group Ethics and Compliance programme Our Board of Directors plays a critical role in overseeing and
includes risk assessments, policies, standards, procedures and assessing our culture of ethics and compliance, and ensuring
guidelines, training and awareness, advice, monitoring, policies, practices and behaviour are consistent with our
speaking openly and investigations. We consider guidance Values. Our Board has established a separate Ethics, Compliance
from relevant authorities and international organisations and and Culture (ECC) committee, dedicated to overseeing and
work with leading advisers to ensure that we are aligned with approving key ethics, compliance and culture-related matters
international best practices. within the Group.
Our employees, directors and officers, as well as contractors under We provide training to the Board, emphasising to Directors
Glencore’s direct supervision, working for a Glencore office or their role in ethics and compliance oversight and programme
industrial asset directly or indirectly controlled or operated by implementation. Furthermore, the ECC committee receives
Glencore plc worldwide, must comply with our Code and policies, regular updates covering topics such as the Compliance team
as well as applicable laws and regulations, regardless of location. structure, status of risk assessments, policies, standards,
Our Supplier Standards set out the expectations we have for all procedures or guidelines under development or review,
Glencore Ethics and Compliance programme
ht and gov
oversig erna
ard nce
Bo
Together with other Identifying, assessing
functions, ensuring an and evaluating
appropriate system for compliance risks
discipline and incentives Discipline and Risk and controls
incentives assessments
Coordinating objective Establishing

and consistent Policies, approaches and
internal investigations, Investigations VALUES standards, requirements to
whilst maintaining procedures mitigate compliance
confidentiality and
Safety and guidelines risks and reflect
protecting against Integrity ethical and legal
retaliation Responsibility expectations and
Openness requirements
Speaking Simplicity
openly and Entrepreneurialism Training
raising and
concerns awareness
Providing safe channels Training and raising

to raise concerns awareness on ethics /
regarding potential Monitoring Advice compliance risks
misconduct including
our Group Raising
Concerns Programme
Assessing the effectiveness of programme Providing advice and guidance

implementation and identifying to employees on ethics and
opportunities for improvement compliance matters

updates on training and awareness activities, overviews of In addition, these risks are assessed, at appropriate intervals, across
monitoring visits and key findings. Board members also receive each office and industrial asset across the Group. Local risk
updates on material reports that have come in via our Raising assessments help us understand and document the specific
Concerns platform and the progress of investigations. compliance risks faced by each of our businesses, as well as
The following management committees also support the identify and assess the controls in place to mitigate those risks.
implementation of our Ethics and Compliance programme These risk assessments also form the basis for drafting and
and report to the Board: updating Group policies, standards, procedures and guidelines.
• Th
e Environment, Social and Governance (ESG) committee, Group policy framework
comprises Glencore’s CEO, CFO, Head of Industrial Assets,
Our Group policy framework encompasses our Values, Code
General Counsel, Head of Compliance, Head of Human
of Conduct and a suite of policies, standards, procedures and
Resources, Head of HSEC and Human Rights, and Head of
guidelines on various compliance matters and risks. These include
Sustainability. It also includes senior members of executive
bribery and corruption, conflicts of interest, sanctions, anti-money
management representing marketing and industrial assets
laundering, market conduct, the prevention of the facilitation of
across different commodities. The ESG committee considers
tax evasion, competition law, fraud and information governance.
issues relevant to the Group’s corporate functions regarding
This framework reflects our commitment to uphold ethical
the various ESG programmes and projects implemented
business practices and to meet, or exceed, applicable laws and
across the Group. It also reviews and approves policies,
external requirements.
standards, procedures, systems and controls relevant to the
corporate functions. During 2020, as part of a broader review Group policy architecture
and framework, we initiated a review of all Group compliance
• The Business Approval Committee (BAC), a sub-committee
policies to ensure that they are clear, comprehensive and accessible.
of the ESG, comprises Glencore’s CEO, CFO, General Counsel,
Head of Sustainable Development and other relevant corporate Employees can access our compliance policies, standards,
or business heads as required. It determines, sets guidance and procedures, and guidelines through various channels, including
criteria, and reviews business relationships, transactions or the Group and local intranets. Our managers and supervisors are
counterparties that give rise to ethical or reputational concerns. responsible for ensuring employees understand and comply with
• The Raising Concerns Investigations Committee (RCIC), the policies, standards and procedures. Employees who have
comprises Glencore’s CEO, CFO, General Counsel, Head of access to a work computer must confirm their awareness and
Industrial Assets and Head of Human Resources. The RCIC understanding of our compliance requirements when they
oversees the operation of our Raising Concerns Programme begin working at Glencore and annually thereafter. Our offices
and the conduct of investigations, ensuring recommendations and industrial assets are responsible for implementing Group
and sanctions are applied consistently across the Group. procedures in their offices and industrial assets and developing
and implementing local procedures, consistent with Group policies
GROUP COMPLIANCE FUNCTION STRUCTURE and standards, but adapted for local risks and requirements.
Our Group Compliance team supports the implementation Our policy framework is comprehensive and addresses all
of our Ethics and Compliance programme and is comprised relevant compliance risks, with a strong emphasis on key risks
of our full-time Corporate and Regional teams, as well as local such as anti-corruption, sanctions and money laundering.
Compliance Officers in our offices and industrial assets.
Anti-Corruption
The Corporate Compliance team is responsible for designing,
monitoring and continuously improving the Ethics and Our Anti-Corruption Policy is clear: the offering, providing,
Compliance programme. The Corporate team includes subject authorising, requesting or receiving of bribes is unacceptable, and
matter experts for each element of our programme and the we do not engage in corruption or bribery, including facilitation
various compliance risks that it covers. The Regional Compliance payments. We assess corruption risk within our businesses and
teams are responsible for implementation of the programme in work to address these risks through policies, standards,
specific geographical regions. They provide guidance to the procedures, and guidelines on various topics. These cover:
business and support the local Compliance Officers and a
Political contributions
network of part-time Compliance Coordinators based in our
offices and industrial assets. The Compliance Coordinators have a We do not permit the use of any of our funds or resources as
compliance role in addition to their primary business or corporate contributions to any political campaign, political party, political
role. We hire qualified local Compliance Officers. and have a candidate or any such affiliated organisations.
formal process for nominating and appointing qualified
individuals for the Compliance Coordinator role, depending on Political engagement
the nature and risks identified at our offices and industrial assets. Although we do not directly participate in party politics, we do
Both roles support our employees in day-to-day business engage in policy debate on subjects of legitimate concern to our
considerations, particularly those seeking advice on ethical, lawful business, employees, customers, end users and the communities
behaviour or policy implementation. Employees can access the in which we operate. All officers, employees and persons who
contact details of our Compliance Officers and Compliance lobby on our behalf must comply with all applicable laws and
Coordinators via both Group and local intranets. regulations (including, but not limited to, the laws and regulations
relating to registration and reporting).
GROUP ETHICS AND COMPLIANCE PROGRAMME
Sponsorships, charitable contributions and
Risk assessments community investments
In order to ensure the Ethics and Compliance programme We never make a sponsorship, charitable contribution or
is appropriately designed, tailored to our business and that community investment in order to disguise a bribe, or to gain an
resources are adequately allocated, we identify, assess and improper business advantage.
evaluate compliance risks faced by our business.
We ensure that when we make sponsorships, charitable
We achieve this by performing an annual Group Compliance risk contributions or community investments we conduct risk-based
assessment to identify, record and assess risks relevant to the due diligence and when required, we monitor the appropriate use
entire Group. We document these risks consistently in the Group of our funds or resources.
Compliance Risk Register which covers several risk areas, but
focuses in particular on anti-corruption given the nature of our
business and the geographies in which we operate.

ETHICS AND COMPLIANCE
continued
Gifts and entertainment offboarding, and including continuous monitoring. Through this
We only give and accept reasonable, appropriate and lawful gifts framework, we seek to comply with applicable laws (including
and entertainment that satisfy the general principles of our bribery and corruption, sanctions and money laundering) and to
Anti-Corruption Policy and are not given or received with the manage the reputational risks that can arise from engaging with
intent or prospect of influencing the recipient’s decision-making certain categories of counterparties.
or other conduct. We have requirements for pre-approval of gifts Our framework seeks to ensure that all counterparties are
and entertainment based on localised thresholds, and additional assessed based on their risk and then directed to the most
requirements regarding public officials. appropriate due diligence and management process for their
risk level – either Know Your Counterparty (KYC) or Third Party
Participation in external anti-corruption organisations Due Diligence and Management. All our procedures require
We are a member of the Partnering Against Corruption Initiative beneficial ownership identification.
(PACI) whose members collaborate on collective action and share Our KYC programme differs for our offices and industrial assets
leading practice in organisational compliance. The initiative has due to the different risk profile of the business, but each applies
a commitment of zero tolerance to bribery and requires its a risk-based approach to due diligence for suppliers, customers
members to implement practical and effective anti-corruption and service providers. Our Third Party Due Diligence and
programmes. We are also an associate member of the Maritime Management Procedure is a standardised procedure across
Anti-Corruption Network (MACN). offices and industrial assets. It sets out a detailed, risk-based
We actively participate in PACI and MACN’s annual events assessment process whereby we identify, assess and mitigate
and have incorporated guidelines from both organisations the corruption risk exposure of third party relationships that
into our programme. present the highest risk to Glencore. This applies particularly
to intermediaries, charitable contributions, sponsorships and
We are an active supporter of the Extractive Industries
community investments. The procedure also requires ongoing
Transparency Initiative, which is a multi-stakeholder initiative
training, monitoring and review of the relationships.
between governments, companies and civil society, which
promotes the open and accountable management of Through our Joint Ventures and Mergers and Acquisitions
extractive resources. Procedure, we ensure that our Ethics and Compliance
programme is implemented at all JVs that we control or operate.
Interactions with public officials For JVs which we do not control or operate, we seek to influence
Dealings with public officials bring a higher risk of perceived our JV partners to adopt our commitment to responsible business
bribery, so we are especially careful in our interactions with them practices and implement appropriate compliance programmes.
and have various requirements that guide how we interact with In respect of mergers and acquisitions, we conduct thorough
public officials in order to mitigate corruption risks. pre-transaction due diligence and incorporate acquired or
merged entities which we control or operate, into our Ethics
Transparency and Compliance programme.
Each year we report our total payments to governments and
provide country-by-country and project-by-project information. Training and awareness
Additionally, and where applicable, we have aligned our reporting Training
on such payments with the requirements of Chapter 10 of the
Training on and awareness of our policies, standards, procedures,
European Union accounting directive.
and guidelines are critical components of our Ethics and
Sanctions and trade controls Compliance programme. They ensure our employees and
relevant contractors understand the behaviour expected of them
Our Sanctions Policy sets out our commitment to complying with
and provide guidance on how they can identify and practically
all applicable sanctions, appropriately managing sanctions risk
approach ethics and compliance dilemmas in their daily work.
and not participating in transactions designed or intended to
evade applicable sanctions. The outbreak of Covid-19 has presented some challenges to the
implementation of our training and awareness programme. Our
To manage our sanctions risk exposure and ensure compliance,
aim has been to reduce the impact Covid-19 has had on in-person
we implement a range of controls and processes. These include
training through remote learning strategies. In order to make our
screening and conducting due diligence on our counterparties
online training sessions more engaging and effective, we have
and vessels using a risk-based approach to determine whether
used live voting tools which give the audience an opportunity
they are a sanctions target, subject to sectoral sanctions or
to actively participate. We have also redesigned some of our
otherwise attract sanctions risk.
awareness materials so that they can be viewed and accessed in
Anti-Money laundering an electronic-friendly format. Employees can also easily refer to
these materials via the Glencore Ethics and Compliance app on
Our Anti-Money Laundering Policy sets out our approach to
their mobile devices.
ensuring that we comply with all applicable laws and regulations
to prevent tax evasion and money laundering, and appropriately Our training programmes mix e-learning with face-to-face
manage the related risks. We do not tolerate tax evasion of any training. We tailor our training and awareness materials and make
kind and we do not knowingly or willfully facilitate tax evasion. To them relevant by including hypothetical scenarios illustrating how
manage our money laundering and tax evasion risk exposure and ethics and compliance dilemmas might manifest themselves in
ensure compliance, we implement a number of controls and employees’ daily work.
processes including in respect of payments to third parties. New joiners receive face-to-face compliance training sessions on
our Values, Code of Conduct, and key compliance risks including
Business partners how to raise concerns.
We work with a range of business partners and expect them to E-learning sessions are designed for employees and contractors
share our commitment to ethical business practices. Business with regular access to a work computer. Where regular access to a
partners include our suppliers, customers, joint ventures (JVs), JV work computer is not available, employees and contractors receive
partners, service providers and other counterparties. We have a training in other ways, including induction sessions, pre-shift
comprehensive framework for managing the key risks associated training and toolbox talks.
with our business partners, from onboarding through to

Business Partner Management Framework
Code of Conduct
Key subject matter risk areas
Bribery and corruption Sanctions Money laundering
Corporate policies, procedures, and standards
KYC standard – Industrial

Assets
Suppliers/service providers engaged
in industrial assets
Ongoing
Due diligence monitoring Renewal
(screening)
KYC Procedure – Marketing
Onboarding
Suppliers/service providers engaged

in marketing and customers engaged
in marketing and industrial assets
form
Third Party Due Diligence

and Management Procedure
(applicable to marketing and Enhanced due Ongoing
industrial assets) diligence and monitoring
Termination
Business generating and government business Training (screening,
/offboarding
facing intermediaries, third parties justification periodic audits
managing a community investment review and visits)
and recipients of charitable
contributions and sponsorships
Joint Venture and Assessment

Due diligence
Mergers and Acquisitions Pre
of JV partners
of JV Implementation
Ongoing
Procedure Transaction controls and of compliance
and JV monitoring
approval compliance strategies
operations
strategies
Number of employees completing Number of employees attending in‑person

compliance e-Learnings in 2020* training on key compliance risks in 2020
Code of conduct Conflict of interest Anti-bribery and corruption Anti-bribery and corruption /
39,891 24,875 5,351

Sanctions / Money
laundering red flags
(38,523 in 2019)
Covers: Glencore’s expectations on
how to do business safely,
(new training in 2020)
Covers: the different types of conflicts
of interest, how to recognise
in 277 sessions
Audience: employees and
contractors especially exposed
245
in 19 sessions
responsibly, ethically and legally conflicts, and what to do if they arise to bribery and corruption risks Audience: senior marketing office
and whose role may require them employees especially exposed to
Anti-bribery and corruption Sanctions to interact with third parties. bribery and corruption, sanctions
24,961
(29,481 in 2019)
19,708
(28,574 in 2019)
Sessions tailored to employees
in various functions using
scenarios relevant to their roles
and money laundering risks.
Highly interactive sessions on how
to identify red flags. Case studies
focused on how these key risks might
Covers: facilitation payments, gifts Covers: our approach to sanctions,
present themselves in real situations
and entertainment, and dealings due diligence of counterparties, and
and how to mitigate exposure
with public officials screening of vessels
Audience: employees and contractors with regular access to a work

computer, and in the case of the specific risk e-Learnings, those employees
and contractors who are due to the nature of their roles more exposed to
conflict of interests , bribery and corruption or sanctions risks.
* The 2020 e-Learning completion numbers have reduced due to the carve-out of the agriculture business Viterra (formerly Glencore Agriculture), which is now managing its own
independent compliance programme with oversight from its shareholders including Glencore.

ETHICS AND COMPLIANCE
continued
We also train and develop our own compliance personnel to We have implemented a number of systems across the Group to
increase their understanding of key compliance risks and ensure that we consistently manage and track our compliance
important developments. We encourage them to participate in data across all of our different modules. This includes risk
relevant conferences, lectures, webinars and podcasts, where assessment, training and policies, and gives us an overall picture
possible, to continuously enhance their knowledge and skills. of the risks in each of our offices and industrial assets and the
status of implementation of our programme.
Awareness
Awareness-raising activities and initiatives, in addition to online Speaking openly and raising concerns
and face-to-face training, are key to reminding employees of the We are committed to creating a culture where everyone feels free
importance of ethics and compliance. While in-person activities to speak about concerns in a secure and confidential way. We do
and initiatives have been heavily impacted by Covid-19, we have not tolerate retaliation against anyone who speaks openly about
continued to develop awareness materials in the form of conduct they believe is unethical, illegal or not in line with our
electronic guides, checklists, newsletters, videos and intranet Code and policies, even if the concern is not substantiated. To
communications. assist in achieving these objectives we implemented our
We also continue to develop content for the Glencore Ethics and Whistleblowing Policy during 2020.
Compliance app which supports employees in making choices in We encourage whistleblowers to first raise concerns with relevant
line with our Values, our Code of Conduct and the law. It provides managers or supervisors as they are usually best equipped to
easy, user-friendly mobile access to key ethics and compliance resolve concerns quickly and effectively. Reporters also have the
principles, and allows for easy access to our Raising Concerns option of reaching out to nominated whistleblowing contacts,
platform, Conflicts of Interest declaration platform, and Gifts and who are members of senior management at the office or
Entertainment register. industrial asset.
If a concern remains unresolved or a whistleblower is
Ethics and Compliance event in the DRC uncomfortable using local channels, concerns can also be
reported via our Raising Concerns Programme, our corporate
To mark the United Nations Anti-Corruption Day, on 10 whistleblowing programme, managed in Switzerland.
December 2020, in collaboration with the newly created
Congolese Anti-Corruption Agency (l’Agence de Prévention Raising Concerns allows whistleblowers to raise concerns
et de Lutte contre la Corruption – APLC), the Mining anonymously in any of 21 languages, by internet or phone.
Chapter of Congolese Federation of Companies (FEC) and Hotlines are available in most of the countries where we operate,
La Société Générale des Carrières et des Mines (Gécamines), and details are published on the platform’s website and on
we sponsored a well-attended ethics and compliance event posters at offices and industrial assets.
in Kinshasa, Democratic Republic of the Congo (DRC). All concerns are taken seriously and handled promptly, using an
The objective of the event was to bring together key objective, fact-based rationale. Concerns are investigated either
stakeholders from business, government and non- by our corporate office in Switzerland, or locally, depending on
governmental organisations to discuss their experiences factors such as the nature and severity of the concern.
and approach to anti-bribery and corruption in the DRC. In 2020, the programme received 413 reports of concerns
We introduced the audience to our Ethics and Compliance (2019: 500), with the following breakdown:
programme, our Values, and Code of Conduct, including
Type of concerns Business Integrity – 143 (35%);
our approach to anti-bribery and corruption and conflicts of
HR – 190 (46%);
interest. A panel which alongside Glencore, included
HSEC-Human Rights – 57 (14%);
representatives from Gécamines and the FEC, engaged in
Others – 23 (5%).
an open discussion on these topics before the event
concluded with remarks from the newly appointed Head of Raised via Web – 267;
the APLC. Phone – 115; and
Email/Other (such as direct contact with
compliance/asset management) – 31.
Monitoring
Closed concerns 22%* (2019 – 28%)
We regularly monitor and test the implementation of our
substantiated /
Ethics and Compliance programme in order to determine its
partially substantiated
effectiveness, and that it is operationalised and embedded into
business operations. The monitoring activities also enable us *As percentages of closed concerns as at 31 January 2021.
to identify opportunities for improvement that help develop
and evolve the programme and respond to changes in our Discipline
business, the environments we operate in and applicable Glencore expects all employees to act in accordance with our
laws and regulations. Values, Code of Conduct and policies, regardless of role or location.
Our Annual Monitoring Plan comprises on-site and desktop Glencore takes breaches of our Code of Conduct and policies
reviews. On-site reviews are visits to our offices and/or industrial seriously. Anybody working for Glencore who breaches the Code
assets to assess the implementation of our Ethics and Compliance of Conduct, policies, procedures or the law may face disciplinary
programme. In light of the Covid-19 outbreak, these reviews have action, including dismissal.
been performed remotely. Desktop reviews focus on the analysis
and transaction testing of either compliance processes and
controls or other processes, systems and controls that the
Monitoring team can access centrally.

Interview with our local Compliance team in the DRC

Samy Senot Doss, Regional Being a good RCO requires the ability to adapt and be flexible,
Compliance Officer (RCO) especially in Africa, where implementing an ethics and
Samy is responsible for the compliance programme in this jurisdiction and industry can
implementation of our Ethics be complicated. There are many challenges that require you to
and Compliance programme be active and deeply involved in the business to understand
in Central Africa. He is based the dynamics and issues.
in the Democratic Republic Lastly, you need to be able to quickly identify where the ethics
of Congo. and compliance risks lie and foresee when projects – although
well intentioned – could lead to non-compliant practices. One
Why did you choose
example of this is the Covid-19 pandemic response, where
to work for Glencore?
donations could be well intentioned, but still need to be looked
Through its unique scale, at carefully as they can raise compliance issues.
Glencore can have a considerable influence on – and be a role
model for – other companies in Africa through the way we What do you like most about your job as
integrate ethics and compliance into how we do business. Regional Compliance Officer in the Central
and North Africa region?
What do you enjoy about working at Glencore?
Over the course of my career in Compliance, the statement I
Glencore doesn’t hesitate to support and encourage new ideas hear that bothers me most is: “This is the way we do things
and initiatives if they improve the way of working. The effective around here”.
implementation of an ethics and compliance programme
Every day that statement motivates me to do my best to show
requires a commitment to continuous improvement. In
stakeholders why doing business the right way is essential to our
particular, in my current environment, one has to be willing to
success. My role is to raise the standards and challenge some of
continually seek out new ways to get people to understand the
the practices in this region, and I find that really exciting.
importance of doing business the right way. Being at the
forefront of Glencore’s ethics and compliance strategy in the A rigorous and standardised approach draws a clear line
DRC has been enriching and rewarding. Since I started here, between what can be allowed and what is clearly prohibited,
I’ve also enjoyed being part of the Group’s support for the regardless of the place of operation.
transition to a low-carbon economy. Our membership of the
Fair Cobalt Alliance, which aims to improve working conditions
What’s the biggest challenge you face as Regional
and eliminate child labour, supports our Value of Integrity and
Compliance Officer?
our vision and long-term strategy for being an internationally In general, I’m pleasantly surprised by the commitment and
respected mining business that responsibly produces and engagement of the different stakeholders to make a difference
trades commodities. in how business is conducted in this part of the world. Everyone
knows the stakes are high and wants to contribute at his or her
What do you think makes a good Regional own level to support compliance. There’s an earnest, shared
Compliance Officer? desire to improve the business climate, but sometimes the lack
A good RCO should be an unbiased technician, seeking to of coordination and alignment amongst the various stakeholders
reach consistent decisions and able to clearly demonstrate can limit the impact of individual company initiatives.
the rationale for those decisions. The aim is to create and
strengthen trust in the RCO amongst all stakeholders and be
a trusted advisor.
Hyacinthe Twite and suggest concrete solutions. At the same time, I have
Wa Kisanga, Local to demonstrate firmness, common sense, courage and
Compliance Officer diplomacy in decision-making.
Hyacinthe works closely with
Samy as a full-time member What does your typical work day look like?
of the Compliance team and No one day is quite like any other. My time and energy
is responsible for are mostly focused on the implementation of compliance
implementing our Ethics policies and procedures, performance of third party due
and Compliance programme diligence for intermediaries, review of donations and social
at the Kamoto Copper community projects, and training according to our training
Company in the Democratic plan. The training varies. It might be a training session for
Republic of Congo. senior management on red flags or it may be training new
employees to give them an introduction to our Values, the
What led you to Compliance and what do you Code of Conduct, and key company policies. We also train
enjoy most about it? them on the importance of speaking up and raising concerns
It was the opportunity to add value to support the business in if they witness a breach of our Code, our Values or the law.
achieving its objectives in the right way. Compliance offers a In the DRC we have a significant community investment
dynamic career because it’s always evolving and therefore one programme, so I spend a lot of my time doing due diligence
is always learning. and analysis on the programme’s beneficiaries that fall under
I enjoy learning through doing in Compliance. It’s the real-life, the scope of our Third Party Due Diligence and Management
day-to-day situations that have enriched my knowledge and Procedure. An example might be a community investment
developed my skills. Each day, I must listen to and engage with project for the supply of water to a community surrounding
different stakeholders, understand and analyse complex issues the site.

FINANCIAL REVIEW
Robust adjusted earnings and cash flows in H2
2020 drove net debt down to our target range.
Losses per share were mainly due to non-cash
impairment charges. Cash flows from 2020
support a recommended 12¢/share distribution
to shareholders in 2021
Steven Kalmin
Chief Financial Officer
FINANCIAL RESULTS economies began to recover from the earlier severe Covid
Loss attributable to equity holders moved from a loss of $404 related lockdowns and uncertainty and commodity prices
million in 2019 to a loss of $1,903 million in 2020 and EPS reduced rebounded. The average LME copper price in H2 was 24%
from negative $0.03 per share to negative $0.14 per share. In a year higher than in H1, while own sourced H2 copper production
of rapidly changing global economic conditions, our healthy was up 15% over H1 levels.
overall underlying results reflects a year of two halves. The H1 2020 Notwithstanding 2020 seeing two very different halves as noted
reported results were heavily impacted by the low commodity above, average prices for many of our key commodities were
prices and challenging early pandemic environment, against broadly comparable to 2019, the main exceptions being gold, up
which backdrop, various impairment charges were booked across 27% over 2019 and coal prices, which were materially down (GC
our portfolio. H2 2020 delivered a net profit of $697 million as Newc 22%, API2 19% and API4 12%) compared to 2019. During a
year of uncertainty and volatility, the strength and flexibility of our
business model (combining large-scale marketing and industrial
Group Adjusted EBITDA◊ Cash generated by operating activities), with broad geographic, commodity and activity
activities before working diversification, enabled us to weather and mitigate the worst
capital changes impacts of the pandemic.
$11.6bn
2019: $11.6bn
$8.6bn
2019: $10.3bn
Adjusted EBITDA was $11,560 million and Adjusted EBIT was
$4,416 million in 2020, compared to $11,601 million and $4,151
million in 2019. This broadly consistent headline result masks
differing performances and timing across the Marketing and
15,767 13,210
14,545 11,866 Industrial segments. The Marketing activities segment increased
11,601 11,560
10,346 its contribution to Group Adjusted EBITDA to 32 % (2019: 23 %)
8,568
10,268
7,868 with an Adjusted EBITDA of $3,732 million, an increase of 42 %
over 2019, continuing to build on its record first half contribution,
benefitting from market volatility, dislocation and supportive
pricing curve structures. Adjusted EBITDA from our Industrial
activities segment was $7,828 million, 13 % lower than 2019,
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 however, H2 2020 was up 17% over the comparable period and
was double the H1 2020 contribution as its weighting to industrial
metals was rewarded in H2 against a backdrop of recovering
Net debt/Adjusted EBITDA◊ Shareholder returns
1.37x 12¢/share
economies and higher prices, clearly aided by necessary
accommodative monetary conditions and governmental
fiscal support.
proposed for 2021
Reflecting such business mix, Adjusted EBITDA mining margins
17,556
improved to 36% (2019: 28%) in our metal operations, but reduced
15,526
14,710
15,844 to 17% (2019: 37%) in our energy operations. See page 64.
1.50x 2,005 2,318
10,216
1.00x
0.50x
998 2,836 2,710 1,587
0.00x
2016 2017 2018 2019 2020 2021
2016 2017 2018 2019 2020
Distributions
Net debt
Buybacks
Proposed distribution
EBITDA ratio

Highlights
US$ million 2020 2019 Change %
Key statement of income and cash flows highlights1:
Revenue 142,338 215,111 (34)
Adjusted EBITDA◊ 11,560 11,601 –
Adjusted EBIT◊ 4,416 4,151 6
Net loss attributable to equity holders (1,903) (404) (371)
Loss per share (Basic) (US$) (0.14) (0.03) (380)
Funds from operations (FFO)2◊ 8,325 7,865 6
Cash generated by operating activities before working capital changes 8,568 10,346 (17)
Net purchase and sale of property, plant and equipment2◊ 3,921 4,966 (21)
US$ million 31.12.2020 31.12.2019 Change %

Key financial position highlights:
Total assets 118,000 124,076 (5)
Net funding2,3◊ 35,428 34,366 3
Net debt2,3◊ 15,844 17,556 (10)
Ratios:
FFO to Net debt2◊ 52.5% 44.8% 17
Net debt to Adjusted EBITDA◊ 1.37x 1.51x (9)
Adjusted EBITDA/EBIT◊
Adjusted EBITDA by business segment is as follows:
2020 2019
Marketing Industrial Adjusted Marketing Industrial Adjusted Change
US$ million activities activities EBITDA activities activities EBITDA %
Metals and minerals 1,768 7,285 9,053 1,169 5,555 6,724 35
Energy products 2,053 1,039 3,092 1,515 3,854 5,369 (42)
Corporate and other4 (89) (496) (585) (47) (445) (492) 19
Total 3,732 7,828 11,560 2,637 8,964 11,601 –
Segment change (%) 42 (13)
Adjusted EBIT by business segment is as follows:

2020 2019
Marketing Industrial Adjusted Marketing Industrial Adjusted Change
US$ million activities activities EBIT activities activities EBIT %
Metals and minerals 1,667 3,054 4,721 1,089 1,016 2,105 124
Energy products 1,761 (1,365) 396 1,324 1,274 2,598 (85)
Corporate and other4 (89) (612) (701) (47) (505) (552) (27)
Total 3,339 1,077 4,416 2,366 1,785 4,151 6
Segment change (%) 41 (40)
1 Refer to basis of presentation below.

2 Refer to page 48, also noting that 2019 FFO materially impacted by the lag of income taxes paid in 2019, in respect of 2018 profitability.
3 Includes $652 million (2019: $607 million) of Marketing related lease liabilities.
4 Corporate and other Marketing activities includes $211 million pre-significant items (2019: $58 million) of Glencore’s equity accounted share of Viterra.
◊ Adjusted measures referred to as Alternative performance measures (APMs) which are not defined or specified under the requirements of International Financial Reporting
Standards; refer to APMs section on page 219 for definitions and reconciliations and note 2 of the financial statements for reconciliation of Adjusted EBIT/EBITDA.
Marketing activities also reflecting good business opportunities captured during the
Marketing Adjusted EBITDA and EBIT increased by 42% to $3,732 year and strong procurement margins on the back of generally
million and by 41% to $3,339 million, respectively. As noted above, healthy crop sizes.
the scale and number of macro forces in H1 2020 (primarily Covid Industrial activities
linked, but also OPEC+’s supply response deliberations), and in H2
a rebound in demand for commodities coupled with supply Industrial Adjusted EBITDA decreased by 13% to $7,828 million
constraints, led to extreme levels of market volatility, amid rapidly (Adjusted EBIT was $1,077 million, compared to $1,785 million in
and materially changing underlying supply and demand 2019). The decrease was primarily driven by overall weaker average
scenarios. This backdrop provided overall supportive physical year-over-year commodity prices (coal being the main driver) and
commodity marketing conditions. Metals and minerals Adjusted the impacts of the pandemic on our coal and oil operations, in the
EBIT was up 53%, or a more comparable 16%, adjusting for the form of periods of stopped or reduced work, notably in Colombia,
$350 million of largely non-cash cobalt accounting losses South Africa and Chad, followed by market-related supply
recognised in the base period. Energy products Adjusted EBIT reductions in Australia through H2.
was up 33% over 2019, as exceptional price movements and
dislocations across crude oil and refined products, combined with
soaring demand for and prices of storage and logistics, enabled
our oil department to deliver a record yearly performance. Our
50% share of earnings from the Viterra (formerly Glencore Agri)
agricultural business (captured within Corporate and Other) was
$211 million (post-interest and tax) compared to $58 million in 2019,

FINANCIAL REVIEW
continued
EARNINGS
A summary of the differences between reported Adjusted EBIT and income attributable to equity holders, including significant items, is
set out in the following table:
US$ million 2020 2019
Adjusted EBIT◊ 4,416 4,151
Net finance and income tax expense in relevant material associates and joint ventures1 (580) (337)
Proportionate adjustment Volcan1 (46) (106)
Net finance costs (1,453) (1,713)
Income tax expense2 (306) (369)
Non-controlling interests 454 816
Income attributable to equity holders of the Parent pre-significant items 2,485 2,442
Earnings per share (Basic) pre-significant items (US$)3◊ 0.19 0.18
Significant items◊
Share of Associates’ significant items4 (92) (292)
Movement in unrealised inter-segment profit elimination5 (760) 468
Net loss on disposals of non-current assets6 (36) (43)
Other expense – net7 (173) (173)
Impairments8 (6,392) (2,843)
Income tax credit/(expense)2 1,476 (249)
Non-controlling interests’ share of significant items9 1,589 286
Total significant items (4,388) (2,846)
(Loss)/income attributable to equity holders of the Parent (1,903) (404)
(Loss)/earnings per share (Basic) (US$) (0.14) (0.03)
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.
3 Based on weighted average number of shares, refer to note 17 of the financial statements.
4 Recognised within share of income from associates and joint ventures, see note 2 of the financial statements.
5 Recognised within cost of goods sold, see note 2 of the financial statements.
6 Refer to note 4 of the financial statements and to APMs section for reconciliations.
7 Recognised within other expense – net, see note 5 of the financial statements and to APMs section for reconciliations.
8 Refer to note 6 and 10 of the financial statements and to APMs section for reconciliations.
9 Recognised within non-controlling interests, refer to APMs section.
Significant items ‒ $214 million (2019: $173 million) of closure and severance costs,
Significant items are items of income and expense, which, due primarily relating to suspension of operations at Prodeco
to their nature and variable financial impact or the expected coal in Colombia and the closure of the Aguilar zinc mine
infrequency of the events giving rise to them, are separated for in Argentina. 2019 related to transition of the Mutanda
internal reporting, and analysis of Glencore’s results to aid in operation to temporary care and maintenance, ongoing
providing an understanding and comparative basis of the mine optimisation review at Katanga and closure of the
underlying financial performance. Brunswick lead smelter.
‒ $Nil (2019: gain of $325 million). The 2019 gain related to the
In 2020, Glencore recognised a net expense of $4,388 million
settlement of an outstanding claim (reversing a prior period
(2019: $2,846 million) in significant items comprised primarily of:
provision of the same amount), through the effective sale of
• Expenses of $92 million (2019: $292 million) relating to Glencore’s previously recognised liabilities that the Group assumed in
share of significant expenses recognised directly by our 2018, following termination of a 50:50 consortium with
associates. 2020 had no individually material items. In 2019, the Qatar Investment Authority and its associated investment
expense primarily related to impairments and other items in in OSJC Rosneft
Viterra (net $73 million), Trevali ($65 million) and Oil vessels’
• Impairments of $6,392 million (2019: $2,843 million), see notes 6
entities ($62 million).
and 10. The 2020 charge primarily relates to the:
• Net loss on disposals of non-current assets of $36 million
(2019: $43 million) see note 4. ‒ Chad oil operations ($673 million), due to lower oil price
• Income tax credit of $1,476 million (2019: expense of assumptions and operational impacts from Covid-19
$249 million) – see income taxes below. restrictions to international mobility.
• Other income/(expense) – net expenses of $173 million ‒ Astron oil refinery ($480 million), primarily due to lower
(2019: $173 million) see note 5. Balance primarily comprises: projected oil refining margins, following the global macro-
economic impact of Covid-19 on refined petroleum product
‒ $438 million (2019: $47 million) of mark-to-market gains on demand and resulting global refinery overcapacity.
equity investments / derivative positions accounted for as ‒ Prodeco coal operations ($835 million) owing to continued
held for trading, including the commodity price linked pressure on the API 2 European coal market and seeking to
deferred consideration related to the sale of Mototolo in 2018. place the operations on extended care and maintenance,
‒ $192 million net loss (2019: $70 million) on foreign which application was rejected by the government.
exchange movements. ‒ In addition, a $445 million impairment was recognised within
‒ $113 million (2019: $159 million) relating to certain legal share of income from associates relating to our investment in
matters and the ongoing investigations (legal, expert Cerrejón, our 33.3% interest in a Colombian coal operation
and compliance) related costs (see note 31). (see note 11).

‒ Mopani copper operations ($1,041 million), owing to persistent Equity

operational challenges, results from further technical analysis, Total equity was $34,402 million as at 31 December 2020,
delays in key development projects and cost increases, compared to $39,236 million as at 31 December 2019, the
resulting in the decision to transition mining operations to movement primarily reflecting the loss for the year of $3,946
care and maintenance, and ultimately culminating in an million, including non-controlling interests, and the movements
agreed sale to ZCCM expected to close in H1 2021. in other comprehensive income/(loss) noted below.
‒ Volcan zinc operations ($2,347 million), resulting in a Glencore
attributable amount of $380 million (after tax and non- Other comprehensive income/(loss)
controlling interest), reflecting revised confidence levels in A loss of $885 million was recognised during 2020, compared to
deploying capital to longer-term greenfield projects / a gain of $285 million in 2019 primarily relating to mark-to-market
resources. losses of $630 million, mainly with respect to our investment in
‒ Lydenburg ferrochrome smelter ($116 million), owing to the Russneft (see note 10) and exchange losses on translation of
challenging operating, cost and market environment across foreign operations of $189 million, primarily relating to our South
the South African ferrochrome industry, necessitating African ZAR-denominated subsidiaries.
Glencore to make production and cost reductions.
CASH FLOW AND NET FUNDING/DEBT
The 2019 impairments related primarily to the Prodeco coal
The reconciliation in the table overleaf is the method by which
operations ($514 million), the Chad oil operations ($538 million),
management reviews movements in net funding and net debt
the Mutanda copper operations in the DRC ($300 million), Oxidos
and comprises key movements in cash and any significant
and Cerro de Pasco operations ($378 million) and VAT
non-cash movements in net funding items.
impairments in respect of long overdue claims, predominantly in
Zambia ($162 million). Net funding as at 31 December 2020 increased by $1,062 million
to $35,428 million and net debt (net funding less readily
Net finance costs marketable inventories) decreased by $1,712 million over the
Net finance costs were $1,453 million during 2020, a 15% decrease period to $15,844 million.
compared to $1,713 million in the comparable reporting period, Funds from operations were up 6% compared to 2019, more
primarily due to lower average base rates (mainly US$ Libor). than covering the full increase in working capital of $4,318 million
Interest expense for 2020 was $1,573 million, down 19% over 2019 (including inventories) and the $3,921 million of net capital
and interest income was $120 million compared to $227 million in expenditure.
the prior year.
Business and investment acquisitions and disposals
Income taxes Net outflows from acquisitions and investments were $265 million
An income tax credit of $1,170 million was recognised during 2020, (2019: $147 million) over the year, comprising primarily cash
compared to an expense of $618 million in 2019. Adjusting for derecognised upon disposal of Minera Alumbrera Limited, the
$1,476 million (2019: net expense of $249 million) of net income tax finalisation of acquiring a 30% interest in PT CITA Mineral
credit related to significant items (primarily impairments and tax Investindo Tbk and the acquisition of the remaining 0.5% minority
losses recognised/not recognised), the 2020 pre-significant items interest held in Katanga Mining Limited. The net outflow in 2019
income tax expense was $306 million (2019: $369 million). The was primarily the minority buy-outs within existing operations
2020 effective tax rate, pre-significant items, was 29.7%, consistent (additional 10% in Ulan and 2.7% in Hail Creek).
with the 30.5% in 2019.
Liquidity and funding activities
STATEMENT OF FINANCIAL POSITION In 2020, the following significant financing activities took place:
Current and non-current assets
• In March 2020 (effective May 2020), Glencore refinanced and
Total assets were $118,000 million as at 31 December 2020, extended its committed revolving credit facilities on the same
compared to $124,076 million as at 31 December 2019. Current commercial terms as 2019. As at 31 December 2020, the
assets increased from $41,410 million to $43,212 million, primarily facilities comprise:
due to an increase in marketing inventories on account of higher
metals commodity prices (copper, zinc and aluminium up 26%, ‒ a $9,975 million 12-month revolving credit facility with a
20% and 11% respectively) and higher carried oil volumes at 12-month term-out option at Glencore’s discretion, and a
year-end relative to 2019. Non-current assets decreased from 12-month extension option; and
$82,666 million to $74,788 million, primarily due to impairments to ‒ a $4,650 million 5-year revolving credit facility, with a
property, plant and equipment of $5,250 million, transfer of 12-month extension option.
Mopani to ‘assets held for sale’, lower capital expenditure over the
• In September 2020, issued:
period (below depreciation and amortisation expense) and
mark-to-market adjustments (loss of $630 million) with respect to ‒ 7.5 year EUR 850 million, 1.125% coupon bonds
our investments carried at fair value through other ‒ 5.5 year CHF 225 million, 1.000% coupon bonds
comprehensive income (see note 10). ‒ 5 year $1,000 million, 1.625% coupon bonds
Current and non-current liabilities ‒ 10 year $1,000 million, 2.500% coupon bonds
Total liabilities were $83,598 million as at 31 December 2020, • In December 2020, issued 7.5 year EUR 100 million, 1.125%
compared to $84,840 million as at 31 December 2019. Current coupon bonds
liabilities were broadly consistent with the prior year at $39,441
million. Non-current liabilities decreased from $45,832 million to As at 31 December 2020, Glencore had available committed
$44,157 million, primarily due to a decrease in deferred tax liquidity amounting to $10.3 billion.
liabilities of $1,373 million resulting from the tax-effect of
impairments noted above.
Movements relating to current and non-current borrowings
are set out below in the net funding and net debt movement
reconciliation.

FINANCIAL REVIEW
continued
CASH FLOW AND NET FUNDING/DEBT

Net funding
US$ million 31.12.2020 31.12.2019
Total borrowings as per financial statements 37,479 37,043
Proportionate adjustment – net funding1 (553) (778)
Cash and cash equivalents (1,498) (1,899)
Net funding◊ 35,428 34,366
Cash and non-cash movements in net funding

US$ million 31.12.2020 31.12.2019
Cash generated by operating activities before working capital changes 8,568 10,346
Proportionate adjustment – Adjusted EBITDA1 1,930 1,522
Other non-cash adjustments included within EBITDA 15 13
Net interest paid1 (1,042) (1,368)
Tax paid1 (1,189) (2,814)
Dividends received from associates1 43 166
Funds from operations◊ 8,325 7,865
Net working capital changes2 (4,318) 2,175

Acquisition and disposal of subsidiaries – net2 (222) (117)
Purchase and sale of investments – net2 13 (6)
Purchase and sale of property, plant and equipment – net2 (3,921) (4,966)
Net margin receipts in respect of financing related hedging activities 1,040 529
Acquisition of non-controlling interests in subsidiaries (56) (24)
Distributions paid and transactions of own shares – net (127) (5,327)
Cash movement in net funding 734 129
Net funding acquired in business combinations – (225)
Impact of adoption of IFRS 16 – (865)
Change in lease obligations (457) (582)
Foreign currency revaluation of borrowings and other non-cash items (1,339) (685)
Total movement in net funding (1,062) (2,228)
Net funding◊, beginning of the year (34,366) (32,138)
Net funding◊, end of year (35,428) (34,366)
Less: Readily marketable inventories2 19,584 16,810
Net debt◊, end of year (15,844) (17,556)
1 Refer to APMs section for definition and reconciliations.

2 Refer to Other reconciliations section.
CREDIT RATINGS The distribution is to be effected as a reduction of the capital

In light of the Group’s extensive funding activities, maintaining contribution reserves of the Company. As such, this distribution
investment grade credit rating status is a financial priority. The would be exempt from Swiss withholding tax. As at 31 December
Group’s credit ratings are currently Baa1 (negative outlook) from 2020, Glencore plc had CHF 27 billion of such capital contribution
Moody’s and BBB+ (stable) from Standard & Poor’s. Glencore’s reserves in its statutory accounts. The distribution is subject to
publicly stated objective, as part of its overall financial policy shareholders’ approval at Glencore’s AGM on 29 April 2021.
package, is to seek and maintain strong Baa/BBB credit ratings The distribution is ordinarily paid in US dollars. Shareholders on
from Moody’s and Standard & Poor’s respectively. In support the Jersey register may elect to receive the distribution in sterling,
thereof, Glencore targets a maximum 2x Net debt/Adjusted euros or Swiss francs, the exchange rates of which will be
EBITDA ratio through the cycle, augmented by an upper Net debt determined by reference to the rates applicable to the US dollar
cap of c.$16 billion, excluding Marketing related lease liabilities around this time. Shareholders on the Johannesburg register will
($0.7 billion as at 31 December 2020, representing primarily receive their distribution in South African rand. Further details on
chartered vessels and various storage facilities, where the majority distribution payments, together with currency election and
of such commitments expire within 2 years). distribution mandate forms, are available from the Group’s
website glencore.com or from the Company’s Registrars.
RECOMMENDED DISTRIBUTION
The Directors have recommended a 2020 financial year cash
distribution of $0.12 per share amounting to $1.6 billion,
accounting for own shares held as at 31 December 2020. Payment
will be effected as a $0.06 per share distribution in May 2021 and a
$0.06 per share distribution in September 2021 (in accordance
with the Company’s announcement of the 2021 Distribution
timetable made on 16 February 2021).

Basis of presentation
The financial information in the Financial and Operational between reporting periods and segments and to aid in the
Review is on a segmental measurement basis, including all understanding of the activities taking place across the Group
references to revenue (see note 2) and has been prepared on by adjusting for Significant items and by aggregating or
the basis as outlined in note 1 of the financial statements, with disaggregating (notably in the case of relevant material
the exception of the accounting treatment applied to relevant associates and joint ventures accounted for on an equity basis)
material associates and joint ventures for which Glencore’s certain IFRS measures. APMs are also used to approximate the
attributable share of revenues and expenses are presented. In underlying operating cash flow generation of the operations
addition, the Peruvian listed Volcan, while a subsidiary of the (Adjusted EBITDA). Significant items (see reconciliation below)
Group, is accounted for under the equity method for internal are items of income and expense, which, due to their nature
reporting and analysis due to the relatively low economic and variable financial impact or the expected infrequency of
interest (23%) held by the Group. the events giving rise to them, are separated for internal
The Group’s results are presented on an “adjusted” basis, using reporting, and analysis of Glencore’s results, to aid in providing
alternative performance measures (APMs) which are not an understanding and comparative basis of the underlying
defined or specified under the requirements of IFRS, but are financial performance.
derived from the financial statements, prepared in accordance Alternative performance measures are denoted by the symbol◊
with IFRS, reflecting how Glencore’s management assess the and are further defined and reconciled to the underlying IFRS
performance of the Group. The APMs are provided in addition measures in the APMs section on page 219.
to IFRS measures to aid in the comparability of information
Non-financial information statement

We aim to comply with the Non-Financial Reporting Directive requirements from sections 414CA and 414CB
of the UK Companies Act 2006. The table below sets out where relevant information is located in this report
Reporting requirements Policies Reference in 2020 annual report
1.Environmental Matters • Sustainability Policy • Climate change, page 16

• Code of Conduct • Climate change risk, pages 82 – 83
• Health, safety, environment risk, pages 80 – 81
• Sustainability, page 32
2. Employees • Code of Conduct • Operating risk, page 79

• SafeWork programme • Our people, page 27
• Conflict of Interest Policy • Ethics and Compliance, page 38
• Sustainability Policy
• Diversity Policy
• Corporate Anti-Discrimination
and Harassment Policy
• Corporate Recruiting Policy
3. Human Rights • Human Rights Policy • Community and human rights risk
• Annual Modern Slavery Statement pages 83 – 84
• Sustainability Policy • Sustainability, page 32
• Code of Conduct
4. Social Matters • Code of Conduct • Community and human rights risk,

• Sustainability Policy pages 83 – 84
• Sustainability, page 32
• Our people, page 27
5.Anti-corruption and anti-bribery • Code of Conduct • Laws and enforcement risk, pages 76 – 77
• Global Anti-Corruption Policy • Ethics and Compliance, page 38
6. Business model • Business model, page 8
7.Principal Risk and Uncertainties • Risk management, page 70
8.Non-financial key performance indicators • Non-financial key performance indicators,

page 23

Recycling is becoming an increasingly important part of
Glencore’s business and reflects our purpose of responsibly
sourcing the commodities needed to advance everyday life.
As the world’s population increases and countries continue to
develop and industrialise, society will need more metals and
minerals. Although we will still need mining to meet global
demand, recycling is playing an essential role.
Our recycling activities are carried out both by our dedicated
business, Glencore Recycling, and by our commodity businesses,
in particular Nickel and Zinc. Through these activities, we give
recyclable materials a second life and divert them from landfill,
helping minimising the environmental impacts.
GLENCORE RECYCLING
Glencore Recycling is a market leader in the recycling of copper
and precious metals, with decades of experience in the industry,
recycling more than one million tonnes of scrap electronics since
the 1990s. In 2020, we recovered approximately 27kt copper,
132koz gold, 1.3moz silver, 16koz palladium, and 5koz platinum
from recyclable input feeds.
This fully integrated business, with facilities in the United States
and Canada, sources recyclable materials from original
equipment manufacturers (OEMs), other end-of-life sources
and processors before sampling and determining value. It
STORIES FROM THE YEAR then smelts and refines the materials, before marketing them
Recycling: A case study directly to our customers.
Its approach is underpinned by three core areas: leading
technological expertise, a commitment to customer excellence
DECADES OF and embedding sustainability across the business.

Our plants, laboratories and technical capabilities enable us to
RECYCLING
accurately sample and treat a wide range of complex materials,
while through our smelting and refining capabilities we produce
London Metal Exchange (LME) grade copper and precious metals.
EXPERTISE
We work closely and flexibly with customers to understand their
requirements, ensuring prompt turnaround times and logistics
solutions, and helping them maximise returns.
By working to the electronics industry’s leading responsible
recycling standards, and undergoing third party health, safety and
Giving metals and minerals environmental management assurance at our facilities, we close
a second life: a profile of the loop between processors, manufacturers and consumers.
our recycling activities RECYCLING WITHIN OUR NICKEL AND
ZINC BUSINESSES
In Canada, our Sudbury Integrated Nickel Operations (INO) is one
of the world’s largest processors of secondary nickel and cobalt
bearing materials, including alloy scrap, battery materials, plating
residues and spent catalysts. Sudbury INO has built a solid
reputation for recycling, established over 30 years in the areas of
receiving, sampling and the effective recovery of metals contained
in end-of-life materials. In 2020, we recovered approximately 4.6kt
of nickel and 2kt cobalt. The secondary materials processed are
then further refined at our Nikkelverk refinery in Norway into
finished products with purities amongst the highest in the world.
Our Portovesme lead and zinc smelter in Sardinia, Italy, processes
electric arc furnace (EAF) steel dust. EAF dust is a zinc-containing
by-product of the steel production process, and our recycling and
processing of this material avoids it being sent to landfill. In 2020,
we recovered approximately 57kt zinc directly from EAF dust.
Glencore smelters recovered a further 103kt zinc from treatment
of waelz oxides, which are also derived from steel industry EAF
dust residues.
Any lead recovered from this process is also treated on site,
together with spent car battery paste, mined lead concentrates
and zinc smelter residues to produce refined lead.
To learn more about our recycling activities, visit glencore.com/
what-we-do/recycling

Breaking it down
Although we still need
mining to meet global Last year, we
demand, recycling is playing recovered
an essential role approximately
27kt
copper
132koz
gold
1.25moz
silver
16koz
palladium
5koz
platinum
4.6kt
nickel
2kt
cobalt
160kt
zinc
Kunal explains how a mobile phone or The processed electronics feed will be
laptop is recycled: “Through collection sent to one of our copper smelters, and
and sorting stages, devices end up with blended along with copper concentrates
an electronics pre-processor or recycler to produce copper anodes. The precious
who dismantles them. Then, via metals in the electronics feed will end up
automated or manual sorting, parts of the in the slimes. Both the anodes and the
device will end up in three categories – slimes then go to our copper refinery, and
plastics, steel or aluminium, and non- the output of that process is market
ferrous. This last category, which still has grade copper cathodes, as well as gold
a significant amount of plastic, is sent and silver bars.”
to Glencore for recycling. At one of our
recycling sites, such a feed will go through
further processing to homogenise it.

OUR MARKETING
BUSINESS
We responsibly source the commodities that advance
everyday life – this means moving them from where
they are plentiful to where they are needed
Ivan Glasenberg
MARKET INSIGHT AND CUSTOMER

UNDERSTANDING Marketed volumes (tonnes/bbl)
Our global scale and presence in more than
60 commodities across 35 countries gives us extensive Copper Zinc
market knowledge and insight to help us fully
understand the needs of our customers.
ANTICIPATING SUPPLY AND DEMAND

3.4m 2.8m
Our strategy seeks to maximise value through our Nickel Ferroalloys
integrated marketing and industrial businesses working
side-by-side to give us presence across the entire supply
chain, delivering in-depth knowledge of physical market
supply and demand dynamics and an ability to rapidly
149k 8.5m
adjust to market conditions. Lead Coal
CREATING OPPORTUNITIES
The significant scale of both our own production and 1.0m 68.4m
the volumes secured from third parties allows us to
create margin opportunities from our ability to supply Alumina/
the exact commodities the market needs through aluminium Crude oil
processing and/or blending and optimisation
of qualities.
GENERATING RETURNS
7.2m 791m
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.

GETTING
COMMODITIES
TO WHERE
THEY NEED
TO BE
ARBITRAGE
EOGRAPHIC
G
OPPORTUNITIES
ARBITRAGE
Many of the physical
commodity markets in which
we operate are fragmented Disparity
or periodically volatile. This Different prices for the
can result in arbitrage: price same product in different
discrepancies between geographic regions, taking
the prices for the same into account transportation
commodities in different and transaction costs.
geographic locations
or time periods. Execution
Other factors with arbitrage Leverage global relationships
opportunities include freight and production, processing
and product quality. and logistical capabilities to
source product in one location
and deliver in another.
RODUCT
P IME
T
ARBITRAGE ARBITRAGE
Disparity Disparity
Pricing differences between Different prices for a
blends, grades or types commodity depending on
of commodity, taking into whether delivery is immediate
account processing and or at a future date, taking
substitution costs. into account storage
and financing costs.
Execution
Ensure optionality with Execution
commodity supply contracts, Book “carry trades” that
and look to lock-in profitable benefit from competitive
price differentials through sources of storage, insurance
blending, processing or and financing.
end-product substitution.

MARKET REVIEW AND OUTLOOK
Pandemic-related uncertainty drove industrial metal prices down in the
first half, before a rapid recovery on robust Asian demand, and markets
pricing in Covid’s impact on commodity supply. Energy markets had
a tough year, which also presented trading opportunities
Financial overview
Metals and Energy Corporate Metals and Energy Corporate
US$ million minerals products and other1 2020 minerals products and other1 2019
Revenue◊ 54,847 69,290 – 124,137 73,561 120,627 – 194,188
Adjusted EBITDA◊ 1,768 2,053 (89) 3,732 1,169 1,515 (47) 2,637
Adjusted EBIT◊ 1,667 1,761 (89) 3,339 1,089 1,324 (47) 2,366
Adjusted EBITDA margin 3.2% 3.0% n.m. 3.0% 1.6% 1.3% n.m. 1.4%
1 Corporate and other Marketing activities includes $211 million (2019: $58 million) of Glencore’s equity accounted share of Glencore Agri.
HIGHLIGHTS • a
verage prices for precious metals were markedly higher due to
Marketing delivered an outstanding performance. Adjusted EBIT their often countercyclical characteristics
of $3,339 million was up 41% up on 2019, building on the record Our major commodity trading units performed well during this
first half contribution, which particularly benefitted from difficult year. Year-over-year EBIT increased by approximately $1
heightened market volatility, dislocation and supportive pricing billion, of which $578 million was attributable to the Metals
curve structures. Financial and commodity markets were business, partly reflecting the reversal of the challenging cobalt
extremely volatile in the face of Covid uncertainty, where risk market conditions from 2019 which led to significant marketing
assets were initially heavily sold in March/April, later being met by inventory writedowns in the base period. Energy Products EBIT
enormous liquidty injections and economic stimulus worldwide increased by $437 million as exceptional price movements and
and selective industrial demand recovery, particularly in China. dislocations across crude oil and refined products, combined with
Our diverse suite of commodities responded at different times soaring demand for and prices of storage and logistics, enabled
through this period: our oil department to deliver a record yearly performance.
• base metals initially plunged to multi-year lows on demand- Our 50% share of earnings from the Viterra agricultural business
side fears, but many have since reached multi-year highs. The (captured within Corporate and Other) was $211 million (post-
market’s confidence in demand has returned, also recognising interest and tax) compared to $58 million in 2019.
that supply growth has been weak, having itself been disrupted
by the pandemic;
• energy prices were depressed through most of 2020, but
ended the year on an upward trajectory as economic activity,
particularly in China, picked up and supply reductions began
to take hold;
Selected marketing volumes sold

Units 2020 2019 Change %
Copper metal and concentrates1 mt 3.4 4.1 (17)
Zinc metal and concentrates1 mt 2.8 3.1 (10)
Lead metal and concentrates1 mt 1.0 1.1 (9)
Gold moz 2.0 2.1 (5)
Silver moz 64.9 68.3 (5)
Nickel kt 149 181 (18)
Ferroalloys (incl. agency) mt 8.5 9.5 (11)
Alumina/aluminium mt 7.2 11.0 (35)
Iron ore mt 57.6 65.5 (12)
Thermal coal2 mt 67.1 86.7 (23)
Metallurgical coal2 mt 1.3 6.5 (80)
Crude oil mbbl 791 973 (19)
Oil products mbbl 738 779 (5)
1 Estimated metal unit contained.

2 Includes agency volumes.

Market highlights
Copper Zinc Nickel Coal
2020E global copper 2016-2020E cumulative global 2016-2020E cumulative nickel 2020E Pacific seaborne
mine production1 zinc metal deficit5 market deficit7 thermal coal demand growth8
-1.4% c.2Mt 40kt -7.2%

Global visible copper Global visible zinc exchange Global visible nickel inventory Coal share of 2030 forecast
inventory end-2020 inventory end-2020 end-2020 primary energy demand9
c.11 days’
consumption1
c.6 days’
consumption6
c.35 days’
consumption7
17%
Incremental copper demand 2020E growth in Chinese zinc Primary nickel demand in 2020E Pacific share of
from grid distribution and metal consumption5 batteries: 2016-2020E CAGR8 global seaborne thermal
+1.0% +25%
storage by 20502 coal demand8
8.7Mt 2020E global zinc metal 89%

demand growth: -5.5%5
1Mtpa c.1Mt
2020E zinc mine supply4 2030E coal demand9
Forecast annual average

12.5Mt
2020 forecast one year ago:
Incremental primary nickel
4.9bt
vs 2019 coal demand of 7.8bt
demand growth from 2020 to demand from EV batteries by
2050 under a Rapid Transition 14Mt 20308
decarbonisation pathway3
1 Wood Mackenzie Copper long-term outlook Q4 2020. Visible inventories comprise 5 Wood Mackenzie Zinc long-term outlook Q4 2020 update
LME, SHFE, Comex and estimated Chinese bonded warehouse stock 6 Wood Mackenzie Zinc long-term outlook Q4 2020 update, exchange inventories
2 Glencore modelled estimates under a Rapid Transition (IEA SDS) scenario, comprise LME and SHFE.
compared to 2020 7 Glencore estimates, visible inventories comprise LME and SHFE
3 Glencore, 2020 Investor Update, 4 December 2020, Slide 6 8 Glencore estimates
4 Wood Mackenzie Zinc long-term outlook Q4 2020 update compared with 9 Glencore modelled estimates under a Rapid Transition (IEA SDS) scenario
Q4 2019 update
MARKET VARIABLES
Select average commodity prices
Spot Spot Average Average Change in
31 Dec 2020 31 Dec 2019 2020 2019 average %
S&P GSCI Industrial Metals Index 382 324 318 326 (2)
S&P GSCI Energy Index 164 207 138 199 (31)
LME (cash) copper price ($/t) 7,749 6,149 6,186 6,005 3

LME (cash) zinc price ($/t) 2,729 2,280 2,269 2,548 (11)
LME (cash) lead price ($/t) 1,976 1,914 1,826 1,999 (9)
LME (cash) nickel price ($/t) 16,554 13,950 13,803 13,944 1
Gold price ($/oz) 1,898 1,517 1,771 1,393 27
Silver price ($/oz) 26 18 21 16 31
Metal Bulletin cobalt price 99.3% ($/lb) 15 15 15 16 (6)
Ferro-chrome 50% Cr import, CIF main Chinese ports, 73 70 70 77 (9)
contained Cr (¢/lb)
Iron ore (Platts 62% CFR North China) price ($/DMT) 154 86 105 90 17
Coal API4 ($/t) 93 79 64 72 (11)

Coal Newcastle (6,000) ($/t) 82 68 61 78 (22)
Oil price – Brent ($/bbl) 52 66 43 64 (33)
Currency table
Spot Spot Average Average Change in
31 Dec 2020 31 Dec 2019 2020 2019 average %
AUD : USD 0.77 0.70 0.69 0.69 –
USD : CAD 1.27 1.30 1.34 1.33 1
EUR : USD 1.22 1.12 1.14 1.12 2
GBP : USD 1.37 1.33 1.28 1.28 –
USD : CHF 0.89 0.97 0.94 0.99 (5)
USD : KZT 421 383 414 383 8
USD : ZAR 14.69 14.00 16.46 14.45 14

continued
COPPER sectors going forward, from renewable power generation and

Having started the year above $6,000/t, the spread of Covid-19 and distribution, to energy storage and electric vehicles.
the associated deteriorating demand outlook resulted in copper COBALT
prices reaching a low of $4,372/t in March. Up to this point, the
impacts to mine and scrap supply were limited. The low price Late 2019 brought stability in the cobalt price at c.$15/lb, with lower
environment was temporary, as supply disruptions from stock levels across the cobalt supply chain and expectations of
containment measures extended globally, particularly mine improved demand conditions into 2020. This materialised with an
supply from South and Central America, while consumption in initial 13% price rally to a 2020 high of $17.00/lb, before the
China began to improve, supported by significant monetary and pandemic-related retracement to reach a 2020 low of $13.75/lb in
fiscal stimulus. Refined copper inventories subsequently reached July. The average price for the year was $15.40/lb, 4% lower than
multi-year lows, signaling a tight physical market. Net imports of 2019. Metal demand sectors, notably aerospace, suffered a more
refined copper to China increased to record monthly levels from pronounced impact than battery and other sectors.
mid-2020. Cathode premiums consequently improved to their Cobalt hydroxide payability was relatively resilient over the first half
highest levels in five years and strong competition for of the year, maintaining a range of 60-70% with the support of
concentrates saw treatment and refining charges moving to logistics disruptions, emerging European EV sector demand and
levels last seen in 2012. solid consumer goods battery demand. African logistics
The improving global demand conditions during the second half disruptions associated with Covid-19 reduced availability of
of the year and continued financial stimulus measures, resulted in hydroxide from the DRC, which is responsible for c.70% of global
a strong recovery in copper prices, supported by ongoing strong supply and almost all cobalt in the form of hydroxide. Although
demand from China, declining visible inventories and more bottlenecks eased during H2, given stronger European EV
recently, improved demand growth expectations with regards to demand and Chinese EV demand showing solid signs of recovery,
the longer term energy transition. Mine supply and logistics payability pushed above 80% in the last quarter.
disruptions persisted into the second half, although to a lesser 2021 has started strongly from a demand and pricing perspective,
extent. Net-speculative positioning continued to move long in the most notably as Chinese and European EV demand builds
run-up to year end and the copper price moved above $8,000/t in momentum. A level of stockpiling of key strategic materials,
December, an increase of more than 80% from the low-point in particularly in China, has also supported demand. EV model
March, and reaching the highest level since early 2013. releases by global automakers, coupled with strong consumer
Looking forward, mine supply is expected to continue to be demand and government support, should underpin EV sales
impacted by measures taken to contain the spread of Covid-19, growth in key markets, pointing to a constructive cobalt
with projects under construction likely to experience further market. Vaccination roll-out is expected to bolster a wider
delays. Supply growth is also constrained by ageing assets, economic recovery, benefiting non-battery demand segments
declining ore grades and a diminished project pipeline. For 2021, including aerospace.
annual treatment and refining charges settled at their lowest
levels in 10 years and benchmark annual cathode premiums
rolled over at 2020 levels, reflecting the positive demand outlook
for copper consumption and anticipated restocking through
supply chains. In the near term, we expect demand to continue to
recover ex-China and to remain strong in China, supported by
economic stimulus measures, Covid vaccine rollouts and a return
to steady growth rates longer term, driven by population growth
and rising living standards in emerging economies. In addition,
climate change policies will be a key driver for copper growth
LME copper price (high, low, average) MB cobalt price (high, low, average)
($/t) ($/lb)
As the pandemic took hold, copper and other industrial metal Cobalt was one of the more stable markets in 2020.
prices reached multi-year lows due to demand uncertainty. With
overall demand proving relatively resilient and growing fears on
mine supply, prices increased dramatically.
8,000 30.00
7,000 25.00
6,000 20.00
5,000 15.00
4,000 10.00
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
2019 range 2019 range

Average Average

ZINC NICKEL
Covid-related disruptions on the supply side resulted in an In 2020, primary nickel consumption declined year on year, whilst
unanticipated zinc concentrates deficit in 2020 and, in turn, lower supply growth was driven by Indonesia. The resulting surplus was
metal production than initially expected. However, global metal larger in H1 2020 as the outbreak of Covid-19 had a greater impact
demand fell faster than supply, resulting in higher visible metal on demand than on mine supply, however it then narrowed in H2
stocks, although still only representing seven days relative to 2020 on increased nickel consumption from Chinese stainless
global demand. Average metal prices reduced by 11% to $2,269 in steel producers.
2020, but by year end, demand had recovered, with prices rising Global stainless steel production was down on the prior year due
to $2,631 on average in Q4 2021. to the pandemic. Notable exceptions were China and Indonesia,
The demand recovery in H2 2020 was stronger in China than in whose production, particularly for the high-nickel containing
the rest of the world, as evidenced by SHFE stocks at similar levels 300-series, experienced a strong rebound from Q2 with total 2020
in both December 2019 and 2020, while other exchange stocks melt exceeding levels seen in 2019.
increased. Meanwhile, Chinese mine production slightly Outside the stainless steel segment, nickel demand from alloys
decreased in 2020 per NBS (-1.8% YoY), metal imports were and special steels was negatively affected by the pandemic’s
curtailed by Covid disruption elsewhere and Chinese smelters impact on key end-use sectors such as aerospace, oil and gas and
continued to process at full capacity, driving concentrates imports automotive. The consequences of travel restrictions and stay-at-
up 20.1%, which absorbed excess concentrates stocks ex-China. home orders for the aerospace industry have been dramatic and
Spot TCs reduced from c.$300/dmt in Q1 2020 to $85/dmt in the effects on downstream demand are likely to be long lasting.
December 2020, as smelters competed for concentrates. Automotive production significantly declined in the second
Towards the end of the year, market publications revised their zinc quarter, prompting year on year double-digit sales declines in
metal surplus estimates for 2020 to below 0.5mt, compared to almost all markets, except China, where the drop was more
earlier forecasts of a 1mt surplus in the midst of the crisis in Q2 modest. Conversely, after a weak first quarter, the electric and
2020. The recovery in the zinc price throughout H2 reflects hybrid vehicle markets exceeded even the most optimistic
renewed optimism for metal demand in 2021, while pricing in forecasts, albeit from a lower base than traditional automotive. In
potential additional disruptions in mine supply and a weaker Europe, the strong policy response prompted by Covid-19 pushed
US dollar. sales above 1 million units, turning it into the world’s largest EV
We expect ex-China mine supply to recover in 2021 (although market. In China, from August, New Energy Vehicles sales were
with risk as Covid measures remain) and be absorbed by post- back to growth mode. We expect the recent positive trend to
Covid increases in ex-China smelter production and some support a strong rebound in 2021 nickel demand, as major
global smelter restocking. Indications for demand recovery are economies and automakers have committed to aggressively
encouraging, underpinned by economic stimulus. support the transformation to EVs.
In lead markets, Covid disruptions drove TCs down from $180/dmt Meanwhile on the supply side, pandemic-related production
in January to $100/dmt by December. Refined metal production losses from traditional nickel suppliers were not as large as initially
was not severely affected by the mine disruptions (-2.4% YoY) and feared and these were more than offset by continued growth in
metal consumption fell by 4% YoY, in which context, the average production of nickel pig iron (“NPI”) in Indonesia, which for the first
price for the year reduced by 9% to $1,826 time, surpassed China as the world largest producer of NPI.
Despite the positive demand outlook, we expect the market
to remain in surplus in 2021, driven by increasing nickel supply
from Indonesia.
LME zinc price (high, low, average) LME nickel price (high, low, average)
($/t) ($/t)
China’s consumption of zinc broadly continued at 2019 levels. Nickel is closely tied to stainless steel markets, and the
development of NPI production in Indonesia.
3,500 20,000
18,000
3,000
16,000
2,500
14,000
2,000
12,000
1,500 10,000
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

Average Average

continued
FERROALLOYS OIL
Global ferrochrome production decreased by 11% in 2020, with 2020 marked one of the most dramatic periods in the history of oil
South Africa declining 25% year on year due to rising cost markets, the implications of which are far-reaching and structural
pressures and Covid lockdown restrictions. South African chrome across many industries. The start of 2020 saw oil prices at their
ore exports reduced by 10% (basis YTD November) highs for the year, with Brent over $69 per barrel. By the end of
Chrome demand recovered during H2, mainly supported by January, the fear of Covid spreading and its anticipated impact on
growth in stainless steel production in China and Indonesia, with oil demand caused market panic, starting a rout in oil prices.
all other major regions decreasing production in 2020. The collapse of the OPEC+ production cut agreement in early
Vanadium consumption from carbon steel production decreased March, temporarily increasing supply, exacerbated the sell-off.
considerably during H1 2020 due to Covid-19 related impacts. Volatility surged to historical highs, with near dated Brent implied
Demand from the aerospace industry was particularly weak. H2 volatility topping 100%. Due to the global pandemic, most
demand improved, largely due to the carbon steel industry in countries entered some form of lockdown at different stages. With
China. transportation severely curtailed, in particular air travel, near term
global oil demand destruction was expected to reach
ALUMINIUM unprecedented levels, even as actual supply was increasing. With
The aluminium and alumina markets experienced a turbulent oil prices in free fall, OPEC+ finally came to an agreement for
2020 due to the pandemic. production cuts on a massive scale of close to 10 million barrels
per day.
The LME 3M contract reached a 4-year low of $1,462 towards the
end of H1, as Covid-19 impaired ex-China demand, causing a large As governments extended lockdowns, global oil storage edged
supply surplus. In China, a strong demand rebound lead to higher towards capacity. Tanker freight rates surged and the oil price
domestic prices, opening the import arbitrage window which curve structure moved into deep contango, as the market forced
supported ex-China prices and attracted 10-year record primary more oil into storage. Brent dropped below $20 per barrel, its
aluminium imports. With this dynamic in place and an improved lowest level in more than 20 years. Oil in some parts of the world,
global macro sentiment, the LME 3M closing price reached a in particular the US, even priced negative for a short period.
yearly high of $2,055 before ending the year at $1,974. In May, oil prices started to recover as more countries lifted
In the U.S., with demand weakening, the delivered Midwest restrictions. Oil inventories looked to have peaked, demand
premium declined in H1 from 14.5c/lb to 9c/lb, before staging a showed signs of recovery and OPEC+ extended production cuts.
recovery in H2 to end the year at 14.65c/lb, on the back of demand The optimism was short lived as Covid-19 second waves hit a
recovery and re-introduction of quotas on Canadian imports. The number of countries in Q3, resulting in renewed restrictions, which
CIF Main Japanese Port premium finished the year at $127/t, up kept a lid on oil prices and the curve dropped back into a deep
from $78/t at the beginning of the year, as customers sought to contango. It was only midway through Q4, when reports emerged
draw aluminium shipments away from China. of possible high-efficacy vaccines, that the oil price strength
resumed, closing around $52 per barrel by the end of the year. At
China alumina imports throughout the year also offered a floor to
the same time, the price curve moved from contango into a
ex-China alumina prices. Price levels were beneficial to smelters
strong backwardation, signaling expectations for a tightening in
during H2 as LME prices outperformed alumina prices.
future market conditions.
IRON ORE The oil market has been working to find price equilibrium in an
Chinese steel production reached record levels in 2020, led by extraordinarily disruptive period, creating material market
strong infrastructure spending, which in turn led to the iron ore imbalances and volatility. Physical oil traders, like ourselves, saw
market being in deficit for most of year. Iron ore prices rose to the usage of storage and logistics soar and unprecedented price
levels not seen over the last five years. In H2 2020, ex-China dislocations in markets for crude oil, refined products and freight,
demand also returned, with prices responding. Despite iron ore generating material trading opportunities.
prices at multi-year highs, steel mill margins have generally been
positive, having been able to pass on the higher raw material costs Brent crude (high, low, average)
to their customers. Prospects for a significant increase in iron ore ($/bbl)
supply are limited in the near term, with prices thereby supported,
subject always to the demand side of the equation. Demand shock in March/April 2020 met ultimately with supply
reductions. Key tensions are OPEC+ policies and the range of
scenarios for demand growth.
80
60
40
20
0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
2019 range
2020 range
Average

COAL seaborne coking coal demand caused spot HCC prices to fall from
Seaborne coal trade was dramatically impacted during 2020 by above $160/t during February to below $110/t at the end of August.
the economic fallout from Covid-19 and the necessary reshuffling Recovery of global steel production ex-China in H2 2020 provided
of trade flows as China restricted Australian coal purchases. The brief support for prices during September / October before the
rapid drop in global energy demand created oversupply, which Chinese restrictions on Australian coal imports pushed prices to
drove prices to unsustainable lows, comparable with the 2016 $100/t levels by year end, leaving some 40% of seaborne suppliers
downturn. By September, producers had realigned thermal coal facing negative cash margins. Improving demand, and
production in line with prevailing demand. Further economic destocking of coking coal and coke, has since supported a price
recovery in Q4 and a cold northern hemisphere winter led prices recovery in early 2021
higher, particularly domestically in China. At year end, coking coal
markets remained temporarily subdued due to the overhang of
market players needing to resell excess inventory of Australian coal
destined for China.
Global seaborne thermal coal demand in 2020 declined by in
excess of 100Mt or 10%, however important pockets of growth
could be seen in Vietnam, Malaysia, Indonesia, Pakistan and
Bangladesh. In Asia overall, demand fell by some 60Mt, mainly
into China, South Korea (preferential use of LNG) and India, due its
extended Covid-19 shutdown. Atlantic market demand declined
by 40Mt against a backdrop of Covid-19 demand declines, record
low LNG import prices, higher carbon prices and growth in
renewables power.
Overall, seaborne thermal markets ended 2020 in a balanced
position due to lower supply, mainly from the USA, Colombia,
Indonesia and Australia, in each case, as producers responded to
the lower demand and price environment.
Despite markets starting the year in good shape, noting the
above, prices were weak from late February until mid-September,
as markets reached a balance, sparking a price recovery from
unsustainably low levels. For the year to September, the
Newcastle, API4 and API2 indices fell 26%, 42% and 27% from their
opening levels to their lows, at which point nearly 60% of the
global seaborne supply was selling at cash negative margins.
Towards year end, prices improved substantially with Newcastle,
API4 and API2 closing the year 32%, 26% and 34% above their year
opening price levels. Overall for 2020, the average index prices for
Newcastle, API4 and API2 were 22%, 11% and 18% respectively
lower than during 2019.
Global pig iron production was down slightly YoY, however
metallurgical coal import countries ex-China reported a 14%
reduction in production. The resulting reduction in global
Coal prices (major relevant indices in 2020) Changes in thermal coal imports (2019-2020)
($/t) (Mt)
100 1,100
80
1,050
60
1,000
40
20 950
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 Rest of EU Korea Japan India China Other 2020
world Asia
NEWC GC Source: IEA

API 2
API 4

OUR INDUSTRIAL
BUSINESS
We are a major producer of commodities that support
the energy and mobility transition, including copper,
cobalt, nickel and zinc, while our high-quality
coal provides affordable and reliable energy
Our industrial business proved resilient to the
challenges of operating in the current environment.
Following a challenging first half, Covid-safe working
practices were embedded and production was largely
restored in the second half of the year
Peter Freyberg
Head of Industrial Assets
Adjusted EBITDA Metals and minerals Energy products margin Sustaining capex
(US$ million)
17% $3.1bn
mining margin
13,275
8,964
36%
2019: 28%
2019: 37% 2019: $4.1bn
7,828 Lower demand for energy Lower spend on C&M assets
Katanga ramping up towards in lockdown conditions such as Mutanda and
nameplate capacity Prodeco, and a level of
Covid-related deferrals
2018 2019 2020
Adjusted EBIT Katanga copper production Equity coal production Expansion capex
(US$ million)
6,729 271kt
2019: 235kt
106mt
2019: 140mt
$1.0bn
Projects in Africa (copper/
Ramp-up executed to plan Covid-related shutdowns and cobalt), Kazakhstan (zinc)
voluntary reductions during and Canada (nickel)
1,785 tough market conditions
1,077
2018 2019 2020

SUPPORTING THE
ENERGY AND
MOBILITY
TRANSITION
Own mineral resources Reserve Life (portfolio weighted average, approx. years)
Copper Zinc Nickel Coal
23 15 26 15
In-house smelting/refining capability (ktpy)
Copper metal Zinc metal Lead metal Ferrochrome Nickel metal
1,160
Excludes idled capacity
1,390 360 1,800
Excludes idled capacity
139
at Mutanda at Lydenburg
Own sourced production in 2020
Copper (kt) Zinc (kt) Lead (kt) Ferrochrome (kt) Nickel (kt)
1,258 1,170 259 1,029 110

Coal (mt) Oil (mbbl) Cobalt (kt)
106 3.9 27
Safe working Socio-economic contribution
Fatalities TRIFR LTIFR Community support initiatives
8
2019: 17
2.65
2019: 2.86
0.94
2019: 0.99
$95m

OUR INDUSTRIAL BUSINESS
continued
Financial overview
Metals
and Energy Corporate Metals and Energy Corporate
US$ million minerals products and other 2020 minerals products and other 2019
Revenue◊ 30,303 11,145 5 41,453 27,672 15,067 4 42,743
Adjusted EBITDA◊ 7,285 1,039 (496) 7,828 5,555 3,854 (445) 8,964
Adjusted EBIT◊ 3,054 (1,365) (612) 1,077 1,016 1,274 (505) 1,785
Adjusted EBITDA mining margin 36% 17% 28% 37%
HIGHLIGHTS mining margin from 28% to 36%. On the other hand, the
The direct and indirect impacts of Covid-19 played out differently equivalent Energy Adjusted EBITDA margin declined from 37% to
in various parts of the business. On the Metals side, asset 17%, reflecting the significant reductions in international coal and
suspensions were relatively short-term, while the market’s oil price benchmarks, and to a lesser extent, lower production
assessment of supply and demand generated sustained volumes on account of various extended suspensions in Colombia
commodity price increases in H2 2020. Meanwhile energy prices and Chad and market-related coal supply reductions in Australia.
remained especially low through most of the year. Capex of $4,082 million (2019: $5,349 million) was 23% lower year
As a result, while overall Industrial Adjusted EBITDA of $7,828 over year, reflecting a mix of targeted reductions/deferrals, and
million was down 13% on 2019, the Metals component was up “involuntary” reductions as planned work was delayed by
31% and Energy down 73%. pandemic-related restrictions.
There were notable successes, during 2020, a year in which our
sites responded to the challenges of adjusting working practices
to be sustainable and safe in the pandemic era. Katanga delivered
on its ramp-up plans, lifting the African copper portfolio to
Adjusted EBITDA of $712 million, a $1bn improvement on 2019,
which was the key factor in lifting the Metals Adjusted EBITDA

Financial information
US$ million 2020 2019 Change %
Revenue◊
Copper assets
Africa (Katanga, Mutanda, Mopani) 3,105 2,829 10
Collahuasi1 1,732 1,385 25
Antamina1 1,055 1,025 3
Other South America (Lomas Bayas, Antapaccay) 2,025 1,709 18
Australia (Mount Isa, Ernest Henry, Townsville, Cobar) 1,988 1,836 8
Custom metallurgical (Altonorte, Pasar, Horne, CCR) 7,842 7,107 10
Intergroup revenue elimination (308) (212) n.m.
Copper 17,439 15,679 11
Zinc assets
Kazzinc 3,031 2,906 4
Australia (Mount Isa, McArthur River) 1,219 1,292 (6)
European custom metallurgical (Portovesme, San Juan de Nieva, Nordenham, Northfleet) 2,883 922 213
North America (Matagami, Kidd, CEZ Refinery) 1,746 2,226 (22)
Other Zinc (Argentina, Bolivia, Peru) 317 400 (21)
Zinc 9,196 7,746 19
Nickel assets
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk) 1,461 1,551 (6)
Australia (Murrin Murrin) 646 664 (3)
Koniambo 239 315 (24)
Nickel 2,346 2,530 (7)
Ferroalloys 1,.321 1,716 (23)

Aluminium/Alumina 1 1 –
Metals and minerals revenue◊ 30,303 27,672 10
Coking Australia 971 1,544 (37)

Thermal Australia 4,031 5,951 (32)
Thermal South Africa 969 1,279 (24)
Prodeco 357 793 (55)
Cerrejòn1 208 494 (58)
Coal revenue (own production) 6,536 10,061 (35)
Coal other revenue (buy-in coal) 400 768 (48)
Oil E&P assets 111 350 (68)
Oil refining assets2 4,098 3,888 5
Energy products revenue◊ 11,145 15,067 (26)
Corporate and other revenue 5 4 25

Total Industrial Activities revenue◊ 41,453 42,743 (3)
1 Represents the Group’s share of these JVs.

2 Controlling interest acquired in April 2019, see note 25.

continued
Adjusted EBITDA◊ Adjusted EBIT◊

US$ million 2020 2019 Change % 2020 2019 Change %
Copper assets
Africa 712 (349) n.m. 148 (1,279) n.m.
Collahuasi1 1,301 885 47 1,011 603 68
Antamina1 755 737 2 472 462 2
Other South America 1,042 859 21 518 264 96
Australia 385 449 (14) 79 121 (35)
Polymet (20) (7) n.m. (20) (7) n.m.
Custom metallurgical 336 377 (11) 162 227 (29)
Copper 4,511 2,951 29% 2,370 391 506
Adjusted EBITDA mining margin2 42% 29%
Zinc assets
Kazzinc 1,228 1,097 12 824 641 29
Australia 384 406 (5) (63) 6 n.m.
European custom metallurgical 327 166 97 181 50 262
North America 240 155 55 74 (59) n.m.
Volcan (33) (44) n.m. (33) (44) n.m.
Other Zinc (21) (5) n.m. (292) (109) n.m.
Zinc 2,125 1,775 20 691 485 42
Nickel assets
Integrated Nickel Operations 670 657 2 235 235 –
Australia 117 105 11 92 81 14
Koniambo (196) (136) n.m. (298) (249) n.m.
Nickel 591 626 (6) 29 67 (57)
Adjusted EBITDA margin 25% 25%
Adjusted EBITDA margin excl. Koniambo 37% 34%
Ferroalloys 133 246 (46) 39 116 (66)

Aluminium/Alumina (73) (40) n.m. (73) (40) n.m.
Iron ore (2) (3) n.m. (2) (3) n.m.
Metals and minerals Adjusted EBITDA/EBIT◊ 7,285 5,555 31 3,054 1,016 201
Coking Australia 244 793 (69) (1) 546 n.m.

Thermal Australia 799 2,332 (66) (528) 1,018 n.m.
Thermal South Africa 183 324 (44) (164) 23 n.m.
Prodeco (72) 43 n.m. (133) (180) n.m.
Cerrejòn1 5 132 (96) (105) (56) n.m.
Coal 1,159 3,624 (68) (931) 1,351 n.m.
Adjusted EBITDA margin3 18% 36%
Oil E&P assets (15) 215 n.m. (187) – n.m.

Oil refining assets (105) 15 n.m. (247) (77) n.m.
Energy products Adjusted EBITDA/EBIT◊ 1,039 3,854 (73) (1,365) 1,274 n.m.
Adjusted EBITDA margin3 17% 37%
Corporate and other (496) (445) n.m. (612) (505) n.m.

Industrial activities Adjusted EBITDA/EBIT◊ 7,828 8,964 (13) 1,077 1,785 (40)

2 Adjusted EBITDA mining margin for Metals and Minerals is Adjusted EBITDA excluding non-mining assets as described below ($6,488 million (2019: $4,941 million)) divided by
Revenue excluding non-mining assets and intergroup revenue elimination ($18,139 million (2019: $17,628 million)) i.e. the weighted average EBITDA margin of the mining assets.
Non-mining assets are the Copper custom metallurgical assets, Zinc European custom metallurgical assets, Zinc North America (principally smelting/processing), the
Aluminium/Alumina group and Volcan (equity accounted with no relevant revenue) as noted in the table above.
3 Energy products EBITDA margin is Adjusted EBITDA for coal and Oil E&P (but excluding Oil refining) ($1,144 million (2019: $3,839 million)), divided by the sum of coal revenue
from own production and Oil E&P revenue ($6,647 million (2019: $10,411 million)).

2020 2019
US$ million Sustaining Expansion Total Sustaining Expansion Total
Capital expenditure◊
Copper assets
Africa 220 196 416 381 477 858
Collahuasi1 287 44 331 298 25 323
Antamina1 180 10 190 228 5 233
Other South America 309 12 321 403 21 424
Australia 208 – 208 203 – 203
Polymet 8 – 8 – 9 9
Custom metallurgical 144 – 144 234 – 234
Copper 1,356 262 1,618 1,747 537 2,284
Zinc assets
Kazzinc 201 193 394 209 236 445
Australia 173 – 173 293 – 293
European custom metallurgical 80 25 105 106 – 106
North America 52 – 52 68 6 74
Other Zinc 47 – 47 104 – 104
Zinc 553 218 771 780 242 1,022
Nickel assets
Integrated Nickel Operations 142 306 448 164 289 453
Australia 33 – 33 16 – 16
Koniambo 38 – 38 39 – 39
Nickel 213 306 519 219 289 508
Ferroalloys 87 28 115 141 8 149

Aluminium/Alumina – – – – – –
Metals and minerals capital expenditure◊ 2,209 814 3,023 2,887 1,076 3,963
Australia (thermal and coking) 394 152 546 358 121 479
Thermal South Africa 147 28 175 200 29 229
Prodeco 44 – 44 229 – 229
Cerrejòn 22 – 22 53 – 53
Coal 607 180 787 840 150 990
Oil E&P assets 119 – 119 201 – 201
Oil refining assets 125 – 125 121 – 121
Energy products capital expenditure◊ 851 180 1,031 1,162 150 1,312
Corporate and other – 28 28 – 74 74

Industrial activities capital expenditure◊ 3,060 1,022 4,082 4,049 1,300 5,349

continued
Operating highlights ZINC ASSETS

Own sourced zinc production of 1,170,400 tonnes was 92,900
COPPER ASSETS tonnes (9%) higher than 2019, mainly reflecting: (i) higher zinc
Own sourced copper production of 1,258,100 tonnes was 113,100 content from Antamina noted above (40,000 tonnes); (ii)
tonnes (8%) lower than 2019, mainly reflecting Mutanda being improved output from the Mount Isa operations (27,800 tonnes);
on care and maintenance in 2020 (partly offset by Katanga’s and (iii) the net positive effect of 18,700 tonnes from Other South
successful ramp-up), with Covid-19 related suspensions being America, owing to restarting the short-life Iscaycruz mine in Peru,
a much smaller factor. offset by Covid-related suspensions and shutdowns.
Own sourced cobalt production of 27,400 tonnes was 18,900
Kazzinc
tonnes (41%) lower than 2019, mainly reflecting Mutanda on care
and maintenance. On a standalone basis, Katanga’s cobalt Own sourced zinc production of 167,500 tonnes was 5,000 tonnes
production was up 6,800 tonnes (40%). (3%) lower than 2019.
Own sourced lead production of 25,600 tonnes was 8,800 tonnes
Africa (26%) lower than 2019, reflecting maintenance on the lead smelter
Own sourced copper production of 301,000 tonnes was 68,900 and mining from the Ushkatyn mine in the base period, which
tonnes (19%) lower than 2019, and cobalt production of 23,900 has now ceased.
tonnes was 18,300 tonnes (43%) lower, in each case reflecting Own sourced copper production of 37,000 tonnes was 7,000 tonnes
Mutanda’s care and maintenance status during 2020, partly offset (16%) lower than 2019 due to expected lower grades at Maleevsky
by Katanga’s ramp-up. mine, and maintenance at the Ridder-Sokolny concentrator.
In January 2021, Glencore agreed terms for the sale of its interest Own sourced gold production of 659,000 ounces was 25,000
in Mopani to ZCCM, with completion expected in H1 2021. ounces (4%) higher than 2019, mainly reflecting higher grades
Collahuasi and recoveries at Vasilkovsky.
Attributable copper production of 276,800 tonnes was 28,000 Australia

tonnes (11%) higher than 2019, reflecting higher milled throughput Zinc production of 633,500 tonnes was 35,900 tonnes (6%) higher
following an investment programme in the plant over recent than 2019 due to drawing down accumulated ore stock at Mount
years. The lower production in Q4 of 59,200 tonnes (down 18% on Isa, now at normal levels, while lead production of 216,800 tonnes
Q4 2019) related to expected ore head grades during the period, was in line with last year.
with a sequential increase expected in Q1 2021.
North America
Antamina
Zinc production of 114,700 tonnes and copper production of
Mining operations were suspended from mid-April to late May as 40,700 tonnes were modestly up on 2019 levels.
part of Peru’s overall Covid-19 response.
Accordingly, attributable copper production of 127,700 tonnes was South America
23,700 tonnes (16%) lower than 2019. Zinc production of 142,400 Zinc production of 112,300 tonnes was 18,700 tonnes (20%) higher
tonnes was up 40,000 tonnes (39%), as expected higher zinc than 2019, mainly reflecting the restart of the short-life Iscaycruz
grades in the current phase of the mine plan more than offset the mine in Peru in Q3 2019, which more than offset the effect of
impact of the Covid suspension. Covid-related mine suspensions and shutdowns in 2020.
Other South America European custom metallurgical assets

Own sourced copper production of 259,700 tonnes was 16,800 Zinc production of 787,200 tonnes was modestly lower than 2019,
tonnes (6%) lower than 2019, mainly reflecting expected lower while lead production of 198,000 tonnes was in line with 2019.
grades at Antapaccay.
NICKEL ASSETS
In December 2020, Glencore contributed its share of the
Alumbrera mine, plant and infrastructure (on care and Own sourced nickel production of 110,200 tonnes was 10,400
maintenance) into a 25% interest in a newly established and tonnes (9%) lower than 2019, reflecting Koniambo operating as a
larger resourced MARA joint venture. single-line operation for the majority of 2020, with Covid-related
mobility restrictions affecting its maintenance schedule. The
Australia expected decline in grades at the existing Sudbury mines (INO)
Own sourced copper production of 185,000 tonnes was 9,600 also contributed.
tonnes (5%) lower than 2019, mainly reflecting temporary access
Integrated Nickel Operations (INO)
restrictions to parts of the Mount Isa underground mine in Q4
2020, and a higher number of required smelter shutdown days Own sourced nickel production of 56,900 tonnes was 3,400
to maintain air quality and emissions standards. tonnes (6%) lower than 2019, mainly reflecting the expected
decline in existing Sudbury mines’ head grades. Refinery
Custom metallurgical assets production including third party material was in line with 2019.
Copper cathode production of 482,600 tonnes was 49,700 tonnes Own sourced copper production of 28,600 tonnes was 15,600
(11%) higher than 2019, reflecting increased output from Pasar tonnes (35%) lower than 2019, mainly reflecting the expected
and CCR. decline in copper from the existing Sudbury mines.
Copper anode production of 490,100 tonnes was 20,600 tonnes
(4%) lower than 2019, mainly reflecting planned maintenance at
Altonorte and Horne.

Murrin Murrin Australian thermal and semi-soft

Own sourced nickel production of 36,400 tonnes was in line Production of 66.7 million tonnes was 12.5 million tonnes (16%)
with 2019. down on 2019, mainly reflecting targeted volume reductions in
H2 2020, in response to the weak coal price environment.
Koniambo
Nickel production of 16,900 tonnes was 6,800 tonnes (29%) South African thermal
lower than 2019, with the operation having effectively been run Production of 24.0 million tonnes was 2.9 million tonnes (11%)
on one furnace (rather than two) for the majority of 2020. One of down on 2019, reflecting various Covid-19 impacts, including
the furnaces was undergoing scheduled maintenance when self-isolation requirements for staff and contractors.
Covid-19 restrictions were introduced in March, delaying its restart
until October. Prodeco
The second furnace was taken down for its own maintenance Prodeco has been on temporary care and maintenance since
in January 2021, with a restart expected in March. March 2020. An application for longer-term care and
maintenance was refused in December 2020. On 4 February 2021,
FERROALLOYS ASSETS Glencore announced that Prodeco would commence the process
Attributable ferrochrome production of 1,029,000 tonnes was of handing its mining contracts back to the Republic of Colombia
409,000 tonnes (28%) lower than 2019, reflecting the South African through the National Mining Agency and that the mines would
lockdown and resulting suspension of smelting operations in Q2, remain on care and maintenance until the formal process of
with a phased restart thereafter. Lydenburg smelter has been relinquishing the contracts was complete.
placed on extended care and maintenance. The remaining four
Cerrejòn
smelters were fully operational from Q4, resulting in materially
higher quarter on quarter production. Cerrejón production was interrupted initially by a mandated
shutdown from Q2-Q3, and subsequently by strike action in
COAL ASSETS Q3-Q4. Production restarted in December 2020, later than
Coal production of 106.2 million tonnes was 33.3 million tonnes initially expected.
(24%) lower than in 2019, reflecting the impacts of the pandemic
OIL ASSETS
via stopped or reduced work periods in Colombia and South
Africa, extended care and maintenance at Prodeco, plus market- Exploration and production
related supply reductions in Australia in H2 2020. Entitlement interest oil production of 3.9 million barrels was 1.6
million barrels (29%) lower than 2019. Operated fields in Chad were
Australian coking placed on care and maintenance in March/April 2020 and are yet
Production of 7.6 million tonnes was 1.6 million tonnes (17%) down to be restarted, given continued pandemic-related challenges in
on 2019, reflecting downtime at Oaky Creek with an additional international mobility (2.3 million barrels decrease). The balance
longwall move in the current period, timing of coking coal reflects year over year production increases in Equatorial Guinea
processing at Newlands and planned wash plant maintenance and Cameroon since new wells were drilled.
at Hail Creek.
Quarter on quarter, production in Equatorial Guinea reduced as
a result of a scheduled temporary shut-in to tie in gas pipeline-
related infrastructure. The Alen field is moving into a natural gas
production phase with first gas expected in Q1 2021.

continued
PRODUCTION DATA
Production from own sources – Total1 Production from own sources – Zinc assets1
Change Change
2020 2019 % 2020 2019 %
Copper kt 1,258.1 1,371.2 (8) Kazzinc
Cobalt kt 27.4 46.3 (41) Zinc metal kt 167.5 172.5 (3)
Zinc kt 1,170.4 1,077.5 9 Lead metal kt 25.6 31.6 (10)
Lead kt 259.4 280.0 (7) Lead in concentrates kt – 2.8 (100)
Nickel kt 110.2 120.6 (9) Copper metal6 kt 37.0 44.0 (16)
Gold koz 916 886 3 Gold koz 659 634 4
Silver koz 32,766 32,018 2 Silver koz 4,712 4,546 4
Ferrochrome kt 1,029 1,438 (28) Silver in concentrates koz – 92 (100)
Australia (Mount Isa,
Production from own sources – Copper assets1 McArthur River)
Change Zinc in concentrates kt 633.5 597.6 6
2020 2019 % Lead in concentrates kt 216.8 213.3 2
African Copper Silver in concentrates koz 7,404 7,193 3
(Katanga, Mutanda, Mopani)
North America (Matagami, Kidd)
Copper metal kt 301.0 359.3 (16)
Zinc in concentrates kt 114.7 111.4 3
Copper in concentrates kt – 10.6 (100)
Copper in concentrates kt 40.7 39.1 4
Cobalt2 kt 23.9 42.2 (43)
Silver in concentrates koz 2,125 1,654 28
Collahuasi3
Other Zinc: South America
Copper in concentrates kt 276.8 248.8 11 (Argentina, Bolivia, Peru)7
Gold in concentrates4 koz 53 38 39 Zinc in concentrates kt 112.3 93.6 20
Silver in concentrates koz 3,961 2,878 38 Lead in concentrates kt 17.0 32.3 (47)
Antamina5 Copper in concentrates kt 1.6 2.7 (41)
Copper in concentrates kt 127.7 151.4 (16) Silver in concentrates koz 6,121 6,906 (11)
Zinc in concentrates kt 142.4 102.4 39 Total Zinc department
Silver in concentrates koz 5,535 5,051 10 Zinc kt 1,028.0 975.1 5
Other South America (Alumbrera, Lead kt 259.4 280.0 (7)
Lomas Bayas, Antapaccay)
Copper kt 79.3 85.8 (8)
Gold koz 659 634 4
Copper in concentrates kt 185.6 197.6 (6)
Silver koz 20,362 20,391 –
Gold in concentrates and in doré koz 90 85 6
Silver in concentrates and in doré koz 1,298 1,576 (18)
Australia (Mount Isa, Ernest Henry,
Townsville, Cobar)
Copper in concentrates kt 46.2 43.5 6
Gold koz 93 100 (7)
Silver koz 1,271 1.615 (21)
Total Copper department
Copper kt 1,150.2 1,241.2 (7)
Cobalt kt 23.9 42.2 (43)
Zinc kt 142.4 102.4 39
Gold koz 236 185 6
Silver koz 12,065 11,120 8

Production from own sources – Nickel assets1 Coal assets1

Change Change
2020 2019 % 2020 2019 %
Integrated Nickel Operations (INO) Australian coking coal mt 7.6 9.2 (17)
(Sudbury, Raglan, Nikkelverk) Australian semi-soft coal mt 4.6 6.4 (28)
Nickel metal kt 56.5 59.8 (6) Australian thermal coal (export) mt 55.7 64.2 (13)
Nickel in concentrates kt 0.4 0.5 (20) Australian thermal coal (domestic) mt 6.4 8.6 (26)
Copper metal kt 13.5 15.8 (15) South African thermal coal
Copper in concentrates kt 15.1 28.4 (47) (export) mt 14.8 13.0 14
Cobalt metal kt 0.6 0.7 (14) South African thermal coal
Gold koz 21 29 (28) (domestic) mt 9.2 13.9 (34)
Silver koz 339 507 (33) Prodeco mt 3.8 15.6 (76)
Platinum koz 40 51 (22) Cerrejòn9 mt 4.1 8.6 (52)
Palladium koz 101 112 (10) Total Coal department mt 106.2 139.5 (24)
Rhodium koz 4 4 –
Oil assets
Murrin Murrin
Change
Nickel metal kt 36.4 36.6 (1) 2020 2019 %
Cobalt metal kt 2.9 3.4 (15) Glencore entitlement
Koniambo interest basis
Nickel in ferronickel kt 16.9 23.7 (29) Equatorial Guinea kbbl 1,960 1,895 3
Total Nickel department Chad kbbl 1,112 3,371 (67)
Nickel kt 110.2 120.6 (9) Cameroon kbbl 872 252 246
Copper kt 28.6 44.2 (35) Total Oil department kbbl 3,944 5,518 (29)
Cobalt kt 3.5 4.1 (15)
Gold koz 21 29 (28) Gross basis
Silver koz 339 507 (33) Equatorial Guinea kbbl 10,435 9,236 13
Platinum koz 40 51 (22) Chad kbbl 1,521 4,608 (67)
Palladium koz 101 112 (10) Cameroon kbbl 2,528 730 246
Rhodium koz 4 4 – Total Oil department kbbl 14,484 14,574 (1)
1 Controlled industrial assets and joint ventures only. Production is on a 100%

Production from own sources – Ferroalloys assets1 basis, except for joint ventures, where the Group’s attributable share of production
is included.
Change 2 Cobalt contained in concentrates and hydroxides.
2020 2019 % 3 The Group’s pro-rata share of Collahuasi production (44%).
Ferrochrome8 kt 1,029 1,438 (28) 4 Reported from Q4 2020 given higher gold price and production, with resulting
increased materiality. Comparatives updated accordingly.
Vanadium Pentoxide mlb 19.5 20.2 (3) 5 The Group’s pro-rata share of Antamina production (33.75%).
6 Copper metal includes copper contained in copper concentrates and blister.
Total production – Custom metallurgical assets1 7 South American production excludes Volcan Compania Minera.
8 The Group’s attributable 79.5% share of the Glencore-Merafe Chrome Venture.
Change 9 The Group’s pro-rata share of Cerrejòn production (33.3%).
2020 2019 %
Copper (Altonorte, Pasar,
Horne, CCR)
Copper metal kt 482.6 432.9 11
Copper anode kt 490.1 510.7 (4)
Zinc (Portovesme, San Juan de
Nieva, Nordenham, Northfleet)
Zinc metal kt 787.2 805.7 (2)
Lead metal kt 198.0 190.5 4

RISK RISK MANAGEMENT FRAMEWORK
Our Group functions support senior management and those with
responsibilities for risk within the business in the development
MANAGEMENT and maintenance of an appropriate institutional risk culture

mitigating risk across the Group, as appropriate.
INDUSTRIAL RISK MANAGEMENT

We believe that every employee should be accountable for the
risks related to their role. As a result, we encourage our employees
to escalate risks (not limited to hazards), whether potential or
realised, to their immediate supervisors. This enables risks to be
tackled and mitigated at an early stage by the team with the
relevant level of expertise.
Led by the Head of Industrial Assets and the Industrial Leads
across each commodity department, management teams at
each industrial operation are responsible for implementing
Risk management is one of the core responsibilities of the processes that identify, assess and manage risk.
Group’s leadership and it is central to our decision-making The risks that may impact on business objectives and plans are
processes. The Group’s leadership fundamental duties as maintained in business risk registers. They include strategic,
to risk management are: compliance, operational and reporting risks.
• making a robust assessment of emerging and principal risks HSEC & SUSTAINABILITY RISK MANAGEMENT
• monitoring risk management and internal controls
These risk management processes are managed at asset level,
• promoting a risk aware culture with the support and guidance from the central Sustainability
The Board also assesses and approves our overall risk appetite and and HSEC and HR teams, and subject to the leadership and
monitors our risk exposure. This process is supported by the Audit, oversight of the HSEC Committee.
HSEC and ECC Committees, whose roles include evaluating and The Group’s internal HSEC Audit programme focuses on
monitoring the risks inherent in their respective areas as catastrophic risks, assessing and monitoring compliance with
described below and to whom the Group’s applicable corporate leading practices.
functions (Risk Management, Compliance, Legal, HSEC, Further information is provided in the report from the HSEC
Sustainable Development, HR and IT) report. Committee on page 96 and will be published in the Group’s
Effective risk management is crucial in helping the Group sustainability report for 2020.
achieve its objectives of preserving its overall financial strength
for the benefit of all stakeholders, and safeguarding its ability MARKETING RISK (MR) MANAGEMENT
to continue as a going concern, while generating sustainable Glencore’s marketing activities are exposed to a variety of risks,
long-term returns. such as commodity price, basis, volatility, foreign exchange,
The Board, through the ECC and HSEC Committees, reviews and interest rate, credit and performance, liquidity and regulatory.
determines the appropriate level of risk management oversight Glencore devotes significant resources to developing and
for the Group’s material JVs. We ensure that our material risk implementing policies and procedures to identify, monitor
management programmes are implemented at all JVs that we and manage these risks.
operate. In other JVs, we seek to influence our JV partners to Glencore’s MR is managed at an individual, business and central
adopt our commitment to responsible business practices and level. Initial responsibility for risk management is provided by
implement appropriate programmes in respect of their main the businesses in accordance with and complementing their
business risks. commercial decision-making. A support, challenge and
Risk management framework

• Risk culture • Board of Directors
Oversight
• Risk strategy and appetite Tone from
• Risk governance the top
• Risk organisation Infrastructure • Management team

• External disclosure
• Risk monitoring and reporting People Process Technology
• Risk identification Risk process • Business segments

• Risk assessment and functions
Identify Measure Mitigate Control Report
• Risk management
HSEC risk and compliance processes
Industrial risk process Marketing risk process
Industrial Marketing

verification role is provided by the central MR function headed by

the Chief Risk Officer (CRO) via its daily risk reporting and analysis Value at risk
which is split by market and credit risk.
The Group monitors its commodity price risk exposure
The MR function monitors and analyses the large transactional by using a VaR computation assessing “open” commodity
flows across many locations using its timely and comprehensive positions which are subject to price risks. VaR is one of the risk
transaction recording, ongoing reporting of the transactions measurement techniques the Group uses to monitor and limit
and resultant exposures, which provides all encompassing its primary market exposure related to its physical marketing
positional reporting, and continually assessing universal exposures and related derivative positions. VaR estimates the
counterparty credit exposure. potential loss in value of open positions that could occur as
The MR team provides a wide array of daily and weekly reporting. a result of adverse market movements over a defined time
For example, daily risk reports showing Group Value at Risk (VaR) horizon, given a specific level of confidence. The methodology
and various other stress tests and analysis are distributed to the is a statistically defined, probability based approach that takes
CEO, CFO and CRO. Additionally, business risk summaries into account market volatilities, as well as risk diversification
showing positional exposure and other relevant metrics, together benefits by recognising offsetting positions and correlations
with potential margin call requirements, are also circulated daily. between commodities and markets. In this way, risks can
The MR function strives to enhance its stress and scenario testing be compared across all markets and commodities and risk
as well as improve measures to capture risk exposure within the exposures can be aggregated to derive a single risk value.
specific areas of the business, e.g. within metals, concentrate Last year, the Board approved the Audit Committee’s
treatment and refining charges are analysed. recommendation of a one day, 95% VaR limit of $100 million,
The Group continues to make extensive use of credit consistent with the previous year. This limit is subject to review
enhancement tools, seeking letters of credit, insurance cover, and approval on an annual basis. It was temporarily increased to
discounting and other means of reducing credit risk from $120 million to reflect the exceptional trading conditions in oil
counterparts. In addition, mark-to-market exposures in relation markets during part of Q2 2020. The purpose of this Group limit
to hedging contracts are regularly and substantially collateralised is to assist senior management in controlling the Group’s overall
(primarily with cash) pursuant to margining agreements in place risk profile, within this tolerance threshold. During the year
with such hedge counterparts. Glencore’s reported average daily VaR was approximately
The Group-wide Credit Risk Policy governs higher levels of credit $39 million, with an observed high of $102 million and a low
risk exposure, with an established threshold for referral of credit of $14 million.
decisions by business heads to the CFO and the CEO (relating There were no breaches in the limit during the year.
to unsecured amounts in excess of $75 million with BBB The Group remains aware of the extent of coverage of risk
(or equivalent) or lower rated counterparts). At lower levels of exposures and their limitations. In addition, VaR does not
materiality, decisions may be taken by the business heads where purport to represent actual gains or losses in fair value on
key strategic transactions or established relationships, together earnings to be incurred by the Group, nor are these VaR results
with credit analysis, suggest that some level of open account considered indicative of future market movements or
exposure may be warranted. representative of any actual impact on its future results. VaR
LEGAL AND COMPLIANCE remains viewed in the context of its limitations; notably, the use
of historical data as a proxy for estimating future events, market
For legal and compliance risk, see Ethics and Compliance section illiquidity risks and risks associated with longer time horizons as
pages 38 – 43, and laws and enforcement risk pages 76 – 77. well as tail risks. Recognising these limitations, the Group
INTERNAL AUDIT complements and refines this risk analysis through the use of
stress and scenario analysis. The Group regularly back-tests its
Glencore’s Internal Audit function reports directly to the Audit VaR to establish adequacy of accuracy and to facilitate analysis
Committee. Its role is to evaluate and improve the effectiveness of significant differences, if any.
of business risk management, control, and business governance
processes. The Board has again approved the Audit Committee’s
recommendation of a one day, 95% VaR limit of $100 million
A risk-based audit approach is applied in order to focus on for 2021.
high-risk areas during the audit process. It involves discussions
with management on key risk areas identified in the Group’s
budgeting process, emerging risks, operational changes, new VaR development ($m)
investments and capital projects. Internal Audit reviews these
areas of potential risk, and suggests controls to mitigate 120
exposures identified.
In recognition of the need to conduct assurance on the global 90
Covid-19 related response across our operations, Corporate HSEC
worked with Internal Audit to develop a remote audit program, 60
which was implemented in May 2020.
The Audit Committee considers and approves the risk-based 30
Internal Audit plan, areas of audit focus and resources and is
regularly updated on audits performed and relevant findings, as 0
Jan Mar May Jul Sep Nov
well as the progress on implementing the actions arising. In 2020 2020 2020 2020 2020 2020
particular, the Committee considers Internal Audit’s main ● Metals and minerals
conclusions, its KPIs and the effectiveness and timeliness of ● Energy products
management’s responses to its findings. The Audit Committee
has concluded that the Internal Audit function remains effective.

RISK MANAGEMENT
continued
2020 developments and overview of principal risks and uncertainties
erate impact KEY

Mod
External risks
1 Supply, demand and prices of commodities
or impact 2 Currency exchange rates
Maj 3 Geopolitical, permits and licences to operate
4 Laws and enforcement
5 Liquidity
ere impac
ev Business risks
S
6 Counterparty credit and performance

t
2 1 3 4 8 7 Operating
8 Cyber
5 9 10
Sustainability risks
9 Health, Safety, Environment
10 Climate change
6 7
11 Community relations and human rights
Risk impact
Moderate Major Severe
11
Risk probability change in 2020 v 2019
Increase Stable
PRINCIPAL RISKS AND UNCERTAINTIES us has been uneven. Key mining regions such as Australia and
Glencore is exposed to a variety of risks that can have an impact Canada have been relatively unimpacted, while Peru, Colombia
on our business and prospects, future performance, financial and South Africa suffered significantly more disruption.
position, liquidity, asset values, growth potential, sustainable The continued high incidence of Covid-19 at the date of this report
development, reputation and licence to operate. Our principal make the outlook over the short-term uncertain and, notably for
risks and uncertainties are highly dynamic and our assessment various energy based business (coal and oil producing
and our responses to them are critical to our future business companies), given the continued acceleration and momentum
and prospects. surrounding decarbonisation, highly more uncertain over the
In accordance with UK Financial Reporting Council guidance, we medium to longer term.
define a principal risk as a risk or combination of risks that could Consistent with the prior year, there are 11 principal risks for the
seriously affect the performance, future prospects or reputation Group, of which, the 6 most significant and potentially posing
of Glencore. These include those risks which would threaten the a material and adverse effect on the Group are:
business model, future performance, solvency or liquidity of 1. supply, demand and prices of commodities,
the Group.
2. geopolitical, permits and licences to operate,
We define an emerging risk as a risk that has not yet occurred but
3. laws and enforcement,
is at an early stage of becoming known and/or coming into being
and expected to grow greatly in significance in the longer term. 4. health, safety, environment, including catastrophic hazards,
The Board mandates its ECC, HSEC and Audit Committees to 5. liquidity, and
identify, assess and monitor the principal and emerging risks 6. climate change risks.
relevant to their respective remits. These Committees usually Further details on each risk is set out on the following pages.
meet five times a year and are always followed by a meeting of
the Board to review and discuss their work. LONGER–TERM VIABILITY
The assessment of our principal risks, according to exposure In accordance with the requirements of the UK Corporate
and impact, is detailed on the following pages. Governance Code, the Board has assessed the prospects of the
The commentary on the risks in this section should be read in Group’s viability over the four-year period from 1 January 2021. This
conjunction with the explanatory text under Understanding our period is consistent with the Group’s established annual business
risks information which is set out on page 73. planning and forecasting processes and cycle, which is subject to
review and approval each year by the Board.
EVOLUTION IN PRINCIPAL RISKS The Board also assessed the medium- and long-term impact of
Impact of Covid-19 climate change on the outlook for our commodity businesses,
Globally, Covid-19 has resulted in immense operational disruptions. under a range of possible scenarios, as set out on page 18. Such
Challenges for Glencore have included safeguarding the health impacts are uncertain, being particularly dependent on long-
and safety of employees, government enforced shut downs, term changes in the energy mix related to power generation and
strained supply chains, liquidity constraints, counterparty financial transportation, as well as consumption efficiencies, behavioural
strains and abrupt shifts to remote working. Covid-19’s impact on change and co-ordinated implementation of government policy
and regulation frameworks, which will materially fall outside the

four-year period selected for assessment of longer term viability.

This analysis, however, indicates stable or improving opportunities Understanding our risks information
across the portfolio in the Current Pathway scenario. In the Rapid
Transformation and Radical Transition scenarios, we project There are many risks and uncertainties which have the
significant coal demand decline over the longer term, more than potential to significantly impact our business. The order in
compensated however (from a financial perspective) by materially which these risks and uncertainties appear does not
stronger demand for battery and new energy infrastructure necessarily reflect the likelihood of their occurrence or the
required metals. relative magnitude of their potential material adverse effect
on our business.
The Board has considered the potential risks arising from
Brexit and determined there to be no material impact on We have sought to provide examples of specific risks. However,
longer-term viability. in every case these do not attempt to be an exhaustive list.
These principal risks and uncertainties should be considered
The four-year plan considers Glencore’s Adjusted EBITDA, capital in connection with any forward looking statements in this
expenditure, funds from operations (FFO) and Net debt, and the document as explained on page 244.
key financial ratios of Net debt to adjusted EBITDA and FFO to
Net debt over the forecast years and incorporates stress tests to Identifying, quantifying and managing risk is complex and
simulate the potential impacts of exposure to the Group’s challenging. Although it is our policy to identify and, where
principal risks and uncertainties. appropriate and practical, actively manage risk, our policies and
procedures may not adequately identify, monitor and quantify
For the 2021-24 plan these scenarios included: all risks.
• a prolonged downturn in the price and demand of This section describes our attempts to manage, balance or
commodities most impacting Glencore’s operations. Prices and offset risk. Risk is, however, by its very nature uncertain and
FX over Q2 2020 (lowest average quarter in 2020, accounting for inevitably events may lead to our policies and procedures not
Covid-19) are assumed to prevail for the outlook period to 2024; having a material mitigating effect on the negative impacts of
• foreign exchange movements to which the Group is exposed as the occurrence of a particular event. Our scenario planning and
a result of its global operations; stress testing may accordingly prove to be optimistic,
• adverse consequences resulting from an increased regulatory particularly in situations where material negative events occur
environment; in close proximity. Since many risks are connected, our analysis
• actions at the Group’s disposal to mitigate the adverse impacts should be read against all risks to which it may be relevant.
of the above, principally the ability to defer or cancel capital In this section, we have sought to update our explanations,
expenditure, to manage the working capital cycle and to reduce reflecting our current outlook. Mostly this entails emphasising
or stop distributions to shareholders; and certain risks more strongly than other risks rather than the
• consideration of the potential impact of adverse movements in elimination of, or creation of, risks. Certain investors may also be
macroeconomic assumptions and their effect on the above key familiar with the risk factors that are published in the Group
financial KPIs and ratios which could increase the Group’s debt or equity prospectuses or listing documents. These
access to or cost of funding. provide in part some differing descriptions of our principal risks.
A recent example is available on our website at: glencore.com/
The scenarios were assessed taking into account current risk
who-we-are/governance
appetite and any mitigating actions Glencore could take, as
required, in response to the potential realisation of any of the In addition, more information on our risks is available in the
stressed scenarios. relevant sections of our website.
Based on the results of the related analysis, the Directors have a To provide for concise text:
reasonable expectation that the Group will be able to continue in • where we hold minority interests in certain businesses,
operation and meet its liabilities as they fall due over the four-year although these entities are not generally subsidiaries and
period of this assessment. They also believe that the review period would not usually be subject to the Group’s operational
of four years is appropriate having regard to the Group’s business control, these interests should be assumed to be subject
model, strategy, principal risks and uncertainties, and viability. to these risks .“Business” refers to these and any business
of the Group
• where we refer to natural hazards, events of nature
or similar phraseology we are referring to matters such
as earthquake, flood, severe weather and other natural
phenomena
• where we refer to “mitigation” we do not intend to suggest
that we eliminate the risk, but rather it refers to the Group’s
attempt to reduce or manage the risk. Our mitigation of
risks will usually include the taking out of insurance where
it is customary and economic to do so
• this section should be read as a whole – often commentary
in one section is relevant to other risks
• “commodity/ies” will usually refer to those commodities
which the Group produces or sells
• “law” includes regulation of any type
• “risk” includes uncertainty and hazard and together with
“material adverse effect on the business” should be
understood as a negative change which can seriously
affect the performance, future prospects or reputation of
the Group. These include those risks which would threaten
the business model, future performance, reputation,
solvency or liquidity of the Group
• a reference to a note is a note to the 2020 financial
statements
• a reference to the sustainability report is our 2020
sustainability report to be published in Q2 of 2021

RISK MANAGEMENT
continued
Strategic priorities
Responsible production and supply Responsible portfolio management Responsible product use
External risks
in global production capacity, global tolerance limit by $20 million in Q2,

1
and regional weather conditions, natural cancelling this shortly afterwards.
disasters and diseases, all of which
Supply, demand and impact global markets and demand
Industrial operations sought to reduce
capital expenditure. For certain operations
prices of commodities for commodities. that were cash negative, difficult decisions
Risk movement in 2020: Increase Future demand for certain commodities were made to suspend some operations.
might decline (e.g. fossil fuels), whereas Major decisions by governments can also
others might increase (such as copper, lead to lower demand for our commodities
Link to strategic priorities cobalt, and nickel for their use in electric in their countries or regions, for example
vehicles and batteries more broadly), China’s restrictions on certain Australian
taking into consideration the transition to a sourced commodities which began
RISK APPETITE low carbon economy. in 2020.
Medium. Being a resources company, Furthermore, changes in expected supply See the Chief Executive Officer’s review on
we are subject to the inherent risk to the and demand conditions impact the page 2, our market and emerging drivers
business of sustained low prices of our expected future prices (and thus the price on page 6 and the financial review on
main commodities. We seek to ensure curve) of each commodity and significant page 44.
this risk is ameliorated through scale of falls in the prices of certain commodities
sufficiently low cost operations and (e.g. copper, coal, zinc and cobalt) can have
a severe drag on our financial MITIGATING FACTORS
diversity of product. For marketing
activities, our market risk appetite is performance, impede shareholder returns
We continue to maintain focus on cost
relatively low and our positions are and could lead to concerns by external
discipline and achieving greater
usually hedged, when possible. stakeholders as to the strength of the
operational efficiency.
Group’s balance sheet.
We actively manage marketing risk,
DESCRIPTION AND This risk is more prevalent in certain
including daily analysis of Group value
POTENTIAL IMPACT commodities, such as steel, coal and oil.
at risk (VaR).
In particular, it is a widely held view that
The revenue and earnings of substantial demand for coal will reduce due to political We maintain both a diverse portfolio of
parts of our industrial asset activities and, pressures, cost reductions for alternatives commodities, geographies, assets and
to a lesser extent, our marketing activities, (renewables and LNG) and possible carbon liabilities and a global portfolio of
are dependent upon prevailing taxes. Oil production/processing is customers and contracts.
commodity prices. Commodity prices are significantly less material for the Group. We prepare for anticipated shifts in
influenced by a number of external factors, New or improved energy production commodity demand, for example by
including the supply of and demand for possibilities and/or technologies can putting a special focus on the parts of the
commodities, speculative activities by reduce the demand for some business that will potentially grow with
market participants, global political and commodities such as coal. increases in usage of electric vehicles and
economic conditions, related industry battery production, and by closely
Any adverse economic developments,
cycles and production costs in major monitoring fossil fuel (particularly thermal
particularly impacting China and fast
producing countries. coal) demands. We can also reduce the
growing developing countries, could
The dependence of the Group (especially production of any commodity within
lead to reductions in demand for, and
our industrial business) on commodity our portfolio in response to changing
consequently price reductions of,
prices, supply and demand of market condition.
commodities.
commodities, make this the Group’s
foremost risk.
DEVELOPMENTS
We are dependent on the expected
volumes of supply or demand for The demand shock to the global economy
commodities which can vary for many from Covid-19 initially led to significantly
reasons, such as competitor supply lower commodity prices, particularly in
policies, changes in resource availability, energy products. Notwithstanding a
government policies and regulation, healthy level of recovery in many
costs of production, global and regional commodities in the second half of last year,
economic conditions and demand in markets continue to be uncertain and
end markets for products in which the potentially volatile.
commodities are used. Supply and Due primarily to statistical modelling
demand volumes can also be impacted by outcomes in oil marketing, the Group
technological developments, fluctuations temporarily increased its Value at Risk

External risks continued
different countries, the currencies of which

2
fluctuate against the US dollar. A MITIGATING FACTORS
depreciation in the value of the US dollar
Currency exchange rates against one or more of these currencies The inverse FX correlation (against USD
Risk movement in 2020: Stable will result in an increase in the cost base of commodity prices) usually provides a
the relevant operations in US dollar terms. partial natural FX hedge for the industrial
business. In respect of commodity
Link to strategic priorities The main currency exchange rate exposure
purchase and sale transactions
is through our industrial assets, as a large
denominated in currencies other than
proportion of the costs incurred by
US dollars, the Group’s policy is usually to
RISK APPETITE these operations is denominated in the
hedge the specific future commitment
currency of the country in which each
through a forward exchange contract.
Low. Where possible, foreign exchange (FX) asset is located.
From time to time, the Group may hedge
exposure to non-operating FX risks is The largest of these exposures are to the a portion of its currency exposures and
hedged. FX risk inherent in the operating currencies listed on page 55. requirements in an attempt to limit any
costs of industrial activities is typically adverse effect of exchange rate fluctuations.
naturally hedged through movements in
DEVELOPMENTS We monitor internally financial impacts
commodity prices.
resulting from foreign currency movements.
A level of producer country FX depreciation
DESCRIPTION AND occurred during 2020, providing some
POTENTIAL IMPACT local currency cost relief relative to the
US dollar.
FX changes happen all the time but are
Near term confidence in stability of global
often difficult to predict. Producer country
demand (and thus indirectly FX rates for
currencies tend to increase in correlation
relevant producer countries) hinges on
with relevant higher commodity prices.
many factors, particularly those that relate
Similarly, decreases in commodity
to the prospects of global economic
prices are generally associated with
growth, including the U.S./China trade
increases in the US dollar relative to local
developments, political/economic
producer currencies.
stability in the Middle East and the
The vast majority of our sales transactions ongoing disruption caused by the
are denominated in US dollars, while coronavirus pandemic.
operating costs are spread across many
3 environments. The Group transacts delays or loss of permits or licences to

business in locations where it is exposed to operate. Policies or laws in the countries
Geopolitical, permits a risk of overt or effective expropriation or in which we do business may change in
nationalisation. Our operations may also a manner that may negatively affect
and licences to operate be affected by political and economic the Group.
Risk movement in 2020: Stable instability, including terrorism, civil disorder, The suspension or loss of our permits or
violent crime, war and social unrest. licences to operate could have a material
Increased scrutiny by governments and adverse effect on the Group and could also
Link to strategic priorities
tax authorities in pursuit of perceived preclude Glencore from participating in
aggressive tax structuring by multinational bids and tenders for future business and
companies has elevated potential tax projects, therefore affecting the Group’s
RISK APPETITE
exposures for the Group. Additionally, long-term viability.
High. We operate in various countries with governments have sought additional Our licences to operate through mining or
less developed political and regulatory sources of revenue by increasing rates drilling rights are dependent on a number
regimes. To be considered a truly diversified of taxation, royalties or resource rent of factors, including compliance with
commodities group, operations in these taxes or may increase sustainability regulations. It also depends on
jurisdictions are required. obligations sometimes in breach of constructive relationships with a wide and
existing stability undertakings. diverse range of stakeholders.
DESCRIPTION AND The terms attaching to any permit or The continued operation of our existing
POTENTIAL IMPACT licence to operate may be onerous and assets and future plans are in part
obtaining these and other approvals, dependent upon broad support, our
We operate and own assets in a large which may be revoked, can be particularly “social licence to operate”, and a healthy
number of geographic regions and difficult. Furthermore, in certain countries, relationship with the respective local
countries, some of which are categorised title to land and rights and permits in communities – see further Community
as developing, complex or having unstable respect of resources are not always clear Relations and Operating risks concerning
political or social fabrics. As a result, we are or may be challenged. workforce disputes.
exposed to a wide range of political, Adverse actions by governments and
economic, regulatory, social and tax others can result in operational/project

RISK MANAGEMENT
continued
A new law on procurement in the DRC is social, and human rights standards, and to
DEVELOPMENTS now being enforced providing among other ensure that our presence in host countries
matters for obligatory contracting with leaves a positive lasting legacy (see
Covid-19 has given rise to new or increased
DRC majority-owned firms and payment sustainability risks later in this section).
concerns with various stakeholders,
of a 1.2% levy on the value of contracts. This commitment is important in assisting
including our workers, host communities
Also see Community and Human Rights in the management of these risks and
and governments, in relation to public
risk on pages 83 – 84. to maintain our permits and licences
health and the broad economic impacts
to operate.
of reduced demand and potentially lower
production levels. MITIGATING FACTORS The Group has an active engagement
strategy with the governments, regulators
Resource nationalism continues to be
The Group’s industrial assets are diversified and other stakeholders within the
a challenging issue in many countries.
across various countries. The Group countries in which it operates or intends to
We published our latest annual Payments also continues to actively engage with operate. Through strong relationships with
to Governments report for 2019 which governmental authorities, particularly stakeholders we endeavour to secure and
provided details on the total government against any backdrop of material maintain our licences to operate.
contributions of over $7.7 billion. It also set upcoming changes and developments The Group has increased its engagement
out details of payments on a project by in legislation and enforcement policies. due to Covid-19 with employees, relevant
project basis. We expect to publish our
We endeavour to design and execute our governmental authorities, regulators and
report on 2020 in the middle of this year.
projects according to high legal, ethical, other stakeholders.
4 and externally. Our marketing operations

DESCRIPTION AND are large in scale, which may make
POTENTIAL IMPACT
Laws and enforcement fraudulent, corrupt or other unlawful
transactions difficult to detect.
Risk movement in 2020: Increase We are exposed to extensive laws,
including those relating to bribery and In addition, some of our industrial activities
corruption, sanctions, taxation, anti-trust, are located in countries where corruption
Link to strategic priorities market conduct rules and regulation, is more commonly seen; and some of our
environmental protection, use of counterparties have in the past, and may
hazardous substances, product safety in the future, become the targets of
RISK APPETITE and dangerous goods regulations, economic sanctions. Corruption and
development of natural resources, licences sanctions risks remain highly relevant for
Medium. The Group maintains over resources, exploration, production and businesses operating in international
programmes which seek to ensure that we post-closure reclamation, employment of markets, as shown by recent enforcement
comply with the laws and external labour and occupational health and safety actions both inside and outside the
requirements applicable to our business standards. The legal system and dispute resources sector.
and products, and has invested significant resolution mechanisms in some countries Governmental and other authorities have
resources in enhancing these compliance in which we operate may be uncertain, commenced, and may in the future
programmes in recent years. This meaning that we may be unable to commence, investigations against the
investment reflects the fact that the Group enforce our understanding of our rights Group (including those listed on page 212)
has a low risk appetite when considering and obligations under these laws. in relation to alleged non-compliance with
entering into transactions or business these laws, and/or may bring proceedings
The costs associated with compliance with
activities that present compliance risk. against the Group in relation to alleged
these laws and regulations, including the
Nevertheless, some of our existing non-compliance. The cost of cooperating
costs of regulatory permits, are substantial
industrial and marketing activities are with the existing investigations and/or
and increasing. Any changes to these laws
located in countries that are categorised as defending proceedings is substantial.
or their more stringent enforcement or
developing or as having complex political or Investigations or proceedings could lead to
restrictive interpretation could cause
social climates, and/or where corruption is reputational damage, the imposition of
additional significant expenditure to be
generally understood to exist, and therefore material fines, penalties, redress or other
incurred and/or cause suspensions of
there will always be residual risk in relation restitution requirements, or other civil or
operations and delays in the development
to our compliance with laws and external criminal sanctions on the Group (and/or on
of industrial assets. Failure to obtain or
requirements. individual employees of the Group), the
renew a necessary permit or the
occurrence of other disputes could mean curtailment or cessation of operations,
that we would be unable to proceed with orders to pay compensation, orders to
the development or continued operation remedy the effects of violations and/or
of an asset and/or impede our ability to orders to take preventative steps against
develop new industrial properties. possible future violations. The impact of
any monetary fines, penalties, redress or
As a diversified sourcing, marketing and
other restitution requirements, and the
distribution company conducting complex
reputational damage that could be
transactions globally, we are particularly
associated with them as a result of
exposed to the risks of fraud, corruption,
proceedings that are decided adversely
market abuse, sanctions breaches and
to the Group, could be material.
other unlawful activities both internally

In addition, the Group may be the subject It is also possible that the various the number of dedicated compliance
of legal claims brought by private parties in investigations may expand and/or other professionals, enhancing our compliance
connection with alleged non-compliance authorities may open investigations into policies and procedures and controls and
with these laws, including class action suits the Group. strengthening the Group’s Raising
in connection with governmental and The final scope and outcome of the Concerns programme and investigations
other investigations and proceedings, and investigations listed above is not possible function – see pages 42.
lawsuits based upon damage resulting to predict or estimate. However, there can be no assurance that
from operations. Any successful claims such policies, standards, procedures and
brought against the Group could result in controls will adequately protect the
MITIGATING FACTORS
material damages being awarded against Group against fraud, corruption, market
the Group, the cessation of operations, We seek to ensure compliance through abuse, sanctions breaches or other
compensation and remedial and/or our commitment to complying with or unlawful activities.
preventative orders. exceeding the laws and regulations
applicable to our operations and products
DEVELOPMENTS and through monitoring of legislative
requirements, engagement with
On 19 June 2020, the Company was government and regulators, and compliance
notified by the Office of the Attorney with the terms of permits and licences.
General of Switzerland (OAG) that it had
We seek to mitigate the risk of breaching
opened a criminal investigation into
applicable laws and external requirements
Glencore International AG for failure to
through our risk management framework.
have the organisational measures in place
to prevent alleged corruption in the DRC. We have implemented a Group Ethics and
Compliance programme that includes a
The current main investigations are
range of policies, standards, procedures,
summarised in note 31. The Group is
guidelines, training and awareness,
continuing to cooperate fully with each of
monitoring and investigations.
the relevant authorities concerning these
investigations. The Investigations We have increased in recent years our
Committee of the Board manages the focus on, and resources dedicated to, the
Group’s responses to these investigations. Group Ethics and Compliance
programme, including through increasing
5 circumstances we are unable to control, cautious approach from a broader

such as general market disruptions, sharp stakeholder and rating agencies
Liquidity movements in commodity prices or an perspective, led to the Board’s decision not
operational problem that affects our banks, to proceed with a 2020 cash distribution.
Risk movement in 2020: Increase suppliers, customers or ourselves. Our net funding at 30 December 2020 was
Our failure to access funds (liquidity) would $35.4 billion (31 December 2019: $34.4 billion).
Link to strategic priorities severely limit our ability to engage in The Group’s business model relies on ready
desired activities. access to substantial borrowings at
A lack of liquidity may mean that we will reasonable cost, which has continued to be
RISK APPETITE not have sufficient funds available for our forthcoming, noting the Group’s successful
marketing and industrial activities, both issuance of circa $3.5 billion long-term
Low. It is the Group’s policy to operate of which employ substantial amounts of bonds in Q3 2020 at attractive interest rates.
a strong BBB rated balance sheet and capital. If we do not have funds available for
to ensure that a minimum level of cash Covid-19 initially resulted in lower
these activities then they will decrease. commodity prices for many of our key
and/or committed funding is available
at any given time. Debt costs may rise owing to ratings commodities, though this reversed
agency downgrades and the possibility during H2 as noted in the section on
of more restricted access to funding. our Marketing business. During the very
DESCRIPTION AND volatile end of Q1 period, Glencore
POTENTIAL IMPACT refinanced and extended its core revolving
DEVELOPMENTS
credit facilities, thereby maintaining and
Liquidity risk is the risk that we are unable
Note 27 details the fair value of our lengthening our committed available
to meet our payment obligations when
financial assets and liabilities. Note 26 liquidity levels at around $10 billion.
due, or are unable, on an ongoing basis,
details our financial and capital risk
to borrow funds in the market at an
management including liquidity risk.
acceptable price to fund our
commitments. While we adjust our The Group’s Net debt has reduced from
minimum internal liquidity threshold from $19.7 billion at 30 June 2020 to $15.8 billion
time to time in response to changes in at year end. The elevated debt position
market conditions, this minimum internal earlier in 2020, coupled with the prevailing
liquidity target may be breached due to market uncertainty and the adoption of a

RISK MANAGEMENT
continued
Business risks
Poor’s. Glencore’s publicly stated objective, the Net debt balance over the medium
MITIGATING FACTORS as part of its overall financial policy term to the lower end of the $10-16bn
package, is to seek and maintain strong range (below $13bn by the end of 2021),
Diversification of our funding sources
Baa/BBB credit ratings from Moody’s and which is being aided by the current
(bank borrowings, bonds and trade
Standard & Poor’s respectively. In support healthy free cash flow generation.
finance, further diversified by currency,
of this, Glencore targets a maximum 2x It should be noted that the credit ratings
interest rate and maturity).
Net debt/Adjusted EBITDA ratio through agencies make certain adjustments,
In light of the Group’s extensive funding the cycle, augmented by an upper Net including a discount to the value of
activities, maintaining investment grade debt cap of ~$16 billion, excluding our Readily Marketable Inventory,
credit rating status is a financial priority. marketing lease liabilities (c.$650 million as such that their calculated net debt
The Group’s credit ratings are currently at 31 December 2020). This financial policy is considerably higher.
Baa1 (negative outlook) from Moody’s and facilitates access to funds, even in periods
BBB+ (stable outlook) from Standard & of market volatility. It is a priority to reduce
Open account risk is taken but this is We monitor the credit quality of our
6
generally guided by the Group-wide Credit physical and hedge counterparties and
Risk Policy for higher levels of credit risk seek to reduce the risk of customer default
Counterparty credit exposure, with an established threshold for or non-performance by requiring credit
and performance referral of credit decisions by department support from creditworthy financial
heads to CFO/CEO, relating to unsecured institutions.
Risk movement in 2020: Increase
amounts in excess of $75 million with BBB Our teams monitor and report regularly
or lower rated counterparts, which occurs to the management on financial and
Link to strategic priorities from time to time, in respect of various key operating results.
strategic relationships.
RISK APPETITE DEVELOPMENTS

Medium. Where possible, credit exposures Many of our customers and suppliers are
are to be covered through credit mitigation experiencing uncertainty and in some
products. cases, financial hardship. We have regular
contact with our key counterparties and, in
DESCRIPTION AND the vast majority of cases, deliveries and
POTENTIAL IMPACT payments have continued in the normal
course of business.
Financial assets consisting principally of
receivables and advances, derivative Additionally, due to Covid-19 related
instruments and long-term advances and uncertainties, certain accounts receivable
loans can expose us to concentrations of insurance limits have been significantly
credit risk. reduced.
Furthermore, we are subject to non- Exposures relating to material oil pre-

performance risk by our suppliers, payments are a particular area of focus.
customers and hedging counterparties, in Our trade receivables were approximately
particular via our marketing activities. $2 billion lower year on year, in a generally
Non-performance by suppliers, customers higher commodity price environment,
and hedging counterparties may occur reflecting steady collections.
and cause losses in a range of situations, The Group’s accounts receivable balance,
such as: including assessment of doubtful
accounts, is set out in note 13.
• a significant increase in commodity
prices resulting in suppliers being
unwilling to honour their contractual MITIGATING FACTORS
commitments to sell commodities at
We seek to diversify our counterparties.
pre-agreed prices
• a significant reduction in commodity We place limits on open accounts, and we
prices resulting in customers being monitor these.
unwilling or unable to honour their The Group continues to make extensive
contractual commitments to purchase use of credit enhancement tools, seeking
commodities at pre-agreed prices letters of credit, insurance cover,
• suppliers subject to prepayment may discounting and other means of reducing
find themselves unable to honour their credit risk with counterparts.
contractual obligations due to financial
distress or other reasons

Business risks continued
7 properties or facilities. This may cause although we are not complacent and
production to be reduced or to cease and continue to monitor the situation. In South
Operating may further result in personal injury or Africa, the operations at our Ferroalloys
death, third party damage or loss or smelters were impacted by power
Risk movement in 2020: Increase require greater infrastructure spending. disruptions and an explosion occurred at
Also, the realisation of these risks could Astron Energy refinery resulting in the loss
require significant additional capital and of two lives and a lengthy shutdown.
Link to strategic priorities
operating expenditures. Despite the challenges created by the
Some of the Group’s interests in industrial global pandemic, we have maintained
RISK APPETITE assets do not constitute controlling stakes. engagement campaigns with employees
Although the Group has various to receive direct feedback on the Group’s
Low. It is the Company’s strategic objective agreements in place which seek to protect culture and practices.
to focus on its people and to conduct safe, its position where it does not exercise
reliable and efficient operations. control, the management of such MITIGATING FACTORS
operations and other shareholders may
DESCRIPTION AND have interests or goals that are inconsistent Development and operating risks and
POTENTIAL IMPACT with ours. They may take action contrary to hazards are managed through our
the Group’s interests or be unable or ongoing project status evaluation and
Our industrial activities are subject to unwilling to fulfil their obligations. reporting processes and ongoing
numerous risks and hazards normally Severe operating or market difficulties may assessment, reporting and communication
associated with the initiation, result in impairments, details of which are of the risks that affect our operations along
development, operation and/or expansion recorded in note 6. with updates to the risk register.
of natural resource projects, many of which We publish our production results
risks and hazards are beyond our control. quarterly and our assessment of reserves
DEVELOPMENTS
These include unanticipated variations in and resources based on available drilling
grade and other geological problems (so Business continuity planning has been and other data sources annually.
that anticipated or stated reserves, may challenging in many countries. The Conversion of resources to reserves and,
not conform to expectations). Other response to the pandemic has varied by eventually, reserves to production is an
examples include natural hazards, jurisdiction, with authorities imposing ongoing process that takes into account
processing problems, technical different requirements, often changing as technical and operational factors,
malfunctions, unavailability of materials the crisis evolved. Almost all operations economics of the particular commodities
and equipment, unreliability and/or were impacted by changed protocols / concerned and the impact on the
constraints of infrastructure, industrial working practises, while many were communities in which we operate.
accidents, labour force challenges, required to fully suspend production for
disasters, protests, force majeure factors, Local cost control measures are
a period of time. complemented by global procurement
cost overruns, delays in permitting or other
regulatory matters, vandalism and crime. The Group engaged with relevant that leverages our scale to seek to achieve
government authorities and advisors to favourable terms on high-consumption
The maintenance of positive employee seek to ensure that its responses and materials such as fuel, explosives and tyres.
and union relations and engagement, and measures focused on the health of its
the ability to attract and retain skilled One of the key factors in our success is
workforce and communities, while a good and trustworthy relationship
workers, including senior management, allowing its operations to continue, where
are key to our success. This attraction and with our people and developing a direct
reasonably practicable. Management engagement with them. This priority is
retention of highly qualified and skilled ensured that Business Continuity Plans
personnel can be challenging, especially, reflected in the principles of our
(BCP) were in place across its business. programme and related guidance, which
but not only, in locations experiencing
political or civil unrest, or in which Cost control and reduction remains a require regular, open, fair and respectful
employees may be exposed to other significant area of management focus, communication, zero tolerance for human
hazardous conditions. noting that in the context of mineral rights violations, fair remuneration and,
resources, absolute costs will tend to above all, a safe working environment as
Many employees, especially at the Group’s increase over time as incremental outlined on our website at: glencore.com/
industrial activities, are represented by resources are likely further from the careers/our-culture and in the Our
labour unions under various collective processing plant and/or deeper, and people section on page 27.
labour agreements. Their employing dilution factors may be higher. A number
company may not be able to satisfactorily of operations have adopted structured
renegotiate its collective labour programmes to analyse their costs, identify
agreements when they expire and may marginal savings and implement these.
face tougher negotiations or higher wage Maintenance and, where possible,
demands than would be the case for reduction of unit costs is regularly reviewed
non-unionised labour. In addition, existing by management.
labour agreements may not prevent a
strike or work stoppage. Infrastructure availability remains a key
risk, though this has been mitigated by
The development and operating of assets certain long-term measures taken.
may lead to future upward revisions in Katanga’s metallurgical plant received
estimated costs, delays or other sufficient continuous high-voltage power
operational difficulties or damage to to deliver on its ramp-up on schedule,

RISK MANAGEMENT
continued
Business risks continued
8 The security of long interconnected

commodity supply chains is an area of MITIGATING FACTORS
Cyber increasing concern that we monitor
We publish IT security standards and
closely. Although Glencore invests heavily
Risk movement in 2020: Increase proactively educate our employees
to monitor, maintain and regularly
in order to raise awareness of cyber
upgrade its systems, processes and
security threats.
networks, absolute security is not possible.
Link to strategic priorities Where possible, cyber exposure risks are
mitigated through layered cyber security,
DEVELOPMENTS
proactive monitoring and cyber security
RISK APPETITE penetration testing to confirm the security
Our IT security monitoring platforms
of systems.
Low. Where possible, cyber exposure risks frequently detect attempts to breach our
are mitigated through layered cyber networks and systems. During 2020, none We seek to keep our system software
security, proactive monitoring and cyber of these events resulted in a material patches up to date and have global
security penetration testing to confirm the breach of our IT environment nor resulted platforms to manage patch compliance.
security of systems. in a material business impact. We have adopted strict privileged access
In March 2020, we initiated our BCP to management to ensure administrator
DESCRIPTION AND facilitate a significant degree of remote rights on critical systems are protected.
POTENTIAL IMPACT working at our operations globally in We have multiple layers of email security
response to the Covid-19 pandemic. With and harden our computers and servers
Cyber risks for firms have increased more of our people working from home, to protect against malware. Corporate
significantly in recent years owing in we are more reliant, not only on our own applications and communications are
part to the proliferation of new digital corporate network, but also Internet secured with multiple layers of security
technologies, increasing degree of service providers to the home. Our IT including two-factor authentication and
connectivity and a material increase security monitoring platforms also VPN technology for remote access.
in monetisation of cybercrime. detected a material increase in phishing We use global IT security platforms in order
A cybersecurity breach, incident or failure fraud attempts linked to Covid-19. to proactively monitor and manage our
of Glencore’s IT systems could disrupt our The emergence of machine learning cyber risks. We routinely conduct third
businesses, put employees at risk, result in and artificial intelligence will increase party penetration tests to independently
the disclosure of confidential information, the volume and sophistication of assess the security of our IT systems. We
damage our reputation and create fraud attempts. The rise of “Deepfake” have a dedicated programme to enhance
significant financial and legal exposure technology using machine learning the monitoring and security of our OT
for the Group. makes it easier to manipulate audio platforms.
Our activities depend on technology for content that could be used in phishing Our IT Security Council sets the global
industrial production, efficient operations, or fraud attacks by impersonating senior cybersecurity strategy, conducts regular
environmental management, health and executives. We continue to monitor risk assessments and designs cyber
safety, communications, transaction developments in this space. security solutions that seek to defend
processing and risk management. We We also expect an increase in “supply chain against emerging malware, viruses,
recognise that the increasing convergence attacks” through which legitimate third vulnerabilities and other cyber threats.
of IT and Operational Technology (OT) party software is manipulated in an Our Cyber Defence Centre is responsible
networks will create new risks and demand attempt to spread malware or gain access for day-to-day monitoring of cyber
additional management time and focus. to systems. vulnerabilities across the Group and
We also depend on third parties in long driving remediation of threats. We have an
supply chains that are exposed to the incident response team that is responsible
same cyber risks but which are largely for coordinating the response in the event
outside our control. of a major cyber incident.
Sustainability risks
9 natural resource sector can have disastrous

RISK APPETITE impacts on workers, communities, the
Health, safety, Medium. We impose HSEC policies and
environment and corporate reputation,
as well as a substantial financial cost.
environment standards designed to protect our people
The success of our business is dependent
and ensure we comply with laws and
Risk movement in 2020: Stable external regulations. on a safe and healthy workforce. Managing
risks to the safety and health of our people
is essential for their long-term wellbeing. It
Link to strategic priorities DESCRIPTION AND also helps us to maintain our productivity
POTENTIAL IMPACT and reduce the likelihood of workplace
compensation claims.
We are committed to ensuring the safety
and wellbeing of our people and the A number of our assets are in regions with
communities and environment around us. little or no access to health facilities and,
Catastrophic events that take place in the due to cultural and/or historical reasons,

Sustainability risks continued
have poor working conditions, resolving potential threats to business governance and technical standards to
organisational cultures and approaches continuity, and focusing on the health and ensure an efficient and consistent
towards personal safety. Our presence in well-being of our workforce. approach to managing HSEC-HR related
these regions can address these During 2020, we have also remained issues across the business. We conducted
challenges through implementing focused on other significant risks facing a review of our SafeWork program, which
strong occupational health and safety our industry, arising from operational is Glencore’s approach to eliminating
management systems. Our operations can catastrophes such as the mining dam fatalities. The programme focuses on
have direct and indirect impacts on the collapses in Brazil in the last five years. identifying and managing the hazards
environment. Our ability to manage and During 2020, the HSEC Committee in every workplace and is built on a set of
mitigate these may impact our operating continued to sponsor and monitor the minimum expectations and mandatory
licences as well as affect future projects Group’s sustainability risks assurance protocols, standards, behaviours and safety
and acquisitions. process. Its focus continues to be on the tools. Well-led, consistent application of
Our operations are often located close Group’s HSEC catastrophic hazards. As SafeWork will drive operating discipline
to communities with limited healthcare. well, we continued implementation of our and prevent fatal accidents at our assets.
Local health services might be in the early Group-wide Tailings Storage Facility and This will be launched in Q1 2021.
stages of development, or local authorities Dam Management Standard, throughout Our commitment to complying with
may not have the resources to cope with the business and participated in the or exceeding the health, safety and
the scale of need. development of the new Global Industry environmental laws, regulations and
We work with national and regional Standard on Tailings Management best practice guidelines applicable to
authorities to identify how Glencore’s (GISTM), in association with International our operations and products is driven
presence can support domestic Council on Mining & Metals (ICMM) through our sustainability framework.
healthcare programmes. member companies. We remain focused on the significant risks
Environmental, safety and health We continue to take a flexible local facing our industry arising from
regulations may result in increased approach to transforming our workforces’ operational catastrophic events. For
costs or, in the event of non-compliance safety and health attitudes and culture. example, the considerable verification
or incidents causing injury or death or We review and strengthen our policies as work and enhanced monitoring of tailings
other damage at or to our facilities or technology and methodologies change storage facilities is assisting in greater
surrounding areas, may result in significant and regularly assess their implementation. visibility and control of these risks, and we
losses. These include, those arising from (1) We continue to strive to achieve our continue to undertake work to improve
interruptions in production, litigation and ambitions of zero workplace fatalities or the safety and stability of these facilities.
imposition of penalties and sanctions and catastrophic environmental incidents. We monitor catastrophic risks across our
(2) having licences and permits withdrawn We regret that we have recorded 8 portfolio and operate emergency response
or suspended while being forced to fatalities at our operations (2019: 17). Our programmes. We are working towards
undertake extensive remedial clean-up Board and senior management are creating a workplace without fatalities,
action or to pay for government-ordered committed to ongoing efforts to improve injuries or occupational diseases through
remedial clean-up actions. practices in order to provide a safe working establishing a positive safety culture.
Liability may also arise from the actions environment. To underscore these efforts We work with local authorities, local
of any previous or subsequent owners and commitment, we initiated a community representatives and other
or operators of the property, by any past or comprehensive review of our safety partners, such as NGOs, to help to
present owners of adjacent properties, or performance expectations and aim to overcome major public health issues in the
by third parties. relaunch our SafeWork programme in regions where we work, such as Covid-19,
early 2021 – see page 35. No major or HIV/AIDS, malaria and tuberculosis.
We operate in some countries characterised
catastrophic environmental (category 4-5
with complex and challenging political See also the Sustainability review on
and above) incidents have occurred during
and/or social climates. This results in a page 35 and the HSEC Committee
the year.
residual risk for compliance with our HSEC report on page 96. Further details will
policies and standards, as well as with also be published in our 2020
external laws and regulations. MITIGATING FACTORS Sustainability Report.
Our approach to the management of There can be no assurances that our

DEVELOPMENTS health, safety and environment, and our policies and procedures will protect
expectations of our workers and our the Group against health, safety and
In response to Covid-19, Glencore focused environmental risks.
business partners are outlined in our
on efforts to ensure the resilience of the
policies and standards. These underpin our
business, including daily monitoring of
approach towards social, environmental,
global conditions, anticipation of potential
safety and compliance indicators,
impacts, and development of action plans
providing clear guidance on the standards
and controls to mitigate risks. At the start
we expect all our operations to achieve.
of the crisis, the corporate Covid-19 Global
Response Steering Committee and In 2020 a new corporate Health, Safety,
Incident Management Team were Environment, and Community and
established to maintain continuous Human Rights team was established
communication and response support for under the Head of Industrial Assets and
our global industrial and marketing teams, Head of HSEC-HR. The objective of this
team is to enhance group-level HSEC-HR

RISK MANAGEMENT
continued
10 Climate change may increase physical risks

to our assets and related infrastructure, MITIGATING FACTORS
Climate change largely driven from extreme weather
We integrate climate considerations, such
events and water related risks such as
Risk movement in 2020: Increase as energy and climate policies in countries
flooding or water scarcity.
where we operate and sell our products,
There has been a significant increase expectations of our value chains, and the
Link to strategic priorities in litigation (including class actions), in various commitments to achieve the goals
which climate change and its impacts of the Paris Agreement, into our strategic
are a contributing or key consideration, decisions and day-to-day operational
RISK APPETITE including administrative law cases, tortious management.
cases and claims brought by investors. In
High. Climate change is a material issue Our internal, cross-function and multi-
particular, a number of lawsuits have been
that can affect our business through commodity working group, led by our
brought against companies with fossil fuel
regulations to reduce emissions, carbon Chairman, co-ordinates our understanding
operations in various jurisdictions seeking
pricing mechanisms, extreme climatic and planning for the effects of climate
damages related to climate change.
events, access to capital, permitting risks change on our business.
and energy costs, as well as changing We have set ourselves a 1.5°C pathway
DEVELOPMENTS
demand for the commodities we produce aligned target of an absolute 40%
and market. We consider our risk appetite Due to falling demand for coal in Europe, reduction of our total emissions (Scope 1, 2
as high due to our significant exposure to and fall in oil price respectively, during and 3) by 2035 on 2019 levels, consistent
coal producing assets. 2020, the Group wrote down the value of with the midpoint of Intergovernmental
its Colombian coal and Chad oil assets by Panel on Climate Change’s 1.5°C scenarios.
Post 2035, we have set ourselves the
DESCRIPTION AND c.$2.2 billion.
ambition to achieve, with a supportive
POTENTIAL IMPACT During the year, the Covid-19 global policy environment, net zero total
pandemic led to a projected 8% decrease emissions by 2050.
A number of governments have already in global energy demand for 2020-2021,
introduced, or are contemplating the which affected all energy providers and This commitment is supported by our
introduction of regulatory responses to resulted in a lower demand for coal, diverse portfolio, which uniquely allows
support the achievement of the goals of including in Asia, as well as for seaborne us to reduce our Scope 3 emissions
the Paris Agreement and the transition coal. As global economies recover from the through investing in our metals portfolio,
to a low-carbon economy. This includes pandemic’s impacts, demand for coal is reducing our coal production over time
countries where we have assets such as expected to improve. However, the likely and supporting deployment of low
Australia, Canada, Chile and South Africa, focus of government stimulus packages emission technologies.
as well as our customer markets such as on low carbon technologies and ongoing Through our focused climate change
China, South Korea, Japan and Europe. reductions in the cost of renewables has programme, we strive to ensure emissions
A transition to a low-carbon economy and the potential to accelerate the reduction and climate change issues are identified,
its associated public policy and regulatory in demand for fossil fuels over the medium understood and monitored in order to
developments may lead to: to long term. meet international best practice
The commitments made by a number standards, ensure regulatory compliance
• the imposition of new regulations,
of countries, including China, to achieve and meet the commitments we have
and climate change related policies
carbon neutrality by 2050 or 2060 are a made in support of the goals of the
adverse to our interests in fossil fuels by
strong indicator of the pace of change and Paris Agreement.
actual or potential investors, customers
and banks, potentially impacting the longer-term global trajectory. New We continuously monitor and report our
Glencore’s reputation, access to capital European regulation, particularly the ‘EU Scope 1, 2 and 3 emissions, and use this
and financial performance Taxonomy’ and the “EU Green Deal’ is likely data in managing our operational carbon
to accelerate the flow of capital to products footprint, as well as the development and
• increased costs for energy and for
and technologies needed in the low- tracking of our targets.
other resources, which may impact
the productivity of our assets and carbon economy, and place greater To understand better and plan for the
associated costs  scrutiny on the carbon footprint of effects of climate change on our business,
European industrial companies, as well we have a framework for identifying,
• the imposition of levies related to
as on those importing products into the understanding, quantifying and,
greenhouse gas emissions
Eurozone. This is relevant for Glencore ultimately, managing climate-related
• increased costs for monitoring and as a large producer of seaborne thermal challenges and opportunities facing
reporting related to our carbon footprint coal and a marketer of fossil fuels our portfolio:
• impacts on the development or more generally.
maintenance of our assets due to • Government policy: we take an active
As a result of these factors, some market
restrictions in operating permits, and constructive role in public policy
participants and analysts take a bearish
licences or similar authorisations development of carbon and energy
view (some strongly so) on the market
issues, both directly and through our
Variations in commodity use from fundamentals for coal and oil. Some may
industry organisations. We seek to
emerging technologies, moves towards choose not to invest in or transact with us,
ensure that there is a balanced
renewable energy generation and policy due to our fossil fuels operations.
debate with regard to the ongoing
changes may affect demand for our
use of fossil fuels
products, both positively and negatively.

• Lobbying activities: we acknowledge • Energy costs: we consider energy costs • Permitting risk: we engage with a broad
IIGCC Investor Expectations on and our carbon footprint in our annual range of stakeholders on diverse topics
Corporate Climate Lobbying and business planning process. Commodity including climate change and related
recognise the importance of ensuring departments are required to provide areas of concern. Our engagement with
that our membership in relevant trade energy and GHG emissions forecasts for our local communities and those directly
associations does not undermine our each asset over the forward planning affected by our operations is transparent
support for the Paris Agreement and period and provide details of mitigation and honest. Where we identify differing
its Goals projects that may reduce such opinions, we look for opportunities to
• Carbon pricing: we operate successfully emissions, including identifying find constructive solutions.
in multiple jurisdictions that have direct and developing renewable energy • Product demand: we track and respond
and indirect carbon pricing or generation opportunities. to regulatory and technology
regulation. We have identified some • Physical impacts: we track changing developments. There are near-term
parts of our business that would likely weather conditions and amend opportunities in positively repositioning
experience financial stress in a high operating processes as appropriate, many of our products that enable the
carbon price environment. However, our as well as incorporate climate risk into decarbonisation transition.
conclusion is that our business overall our design and planning. We regularly • Litigation: our climate change
remains resilient. We consider local review the integrity of our assets, programme strives to ensure that we
regulation and carbon price sensitivities including tailings storage facilities, identify, understand and monitor our
as part of our ongoing business against the potential impact of extreme emissions and climate change issues in
planning for existing industrial assets, weather events. order to meet international best practice
new investments and as part of our • Access to capital: we regularly review our standards, ensure regulatory compliance
marketing activities. We are working banks’ climate change-related policies and meet our commitments that
with relevant industry organisations on and evolving applicable restrictions, if support the goals of the Paris Agreement.
developing lifecycle analysis to calculate any. Through maintaining a strong
our commodities’ carbon footprint Further information is available at:
relationship with our lenders, we
glencore.com/sustainability/
continue to have a broad range of
climate-change
sources from which to access funds.
11 production of the raw materials for social A perception that we are not respecting
progress, payment of taxes and royalties human rights or generating local
Community and to governments and provision of sustainable benefits could have a negative
employment and business opportunities. impact on our ability to operate effectively,
human rights Conversely, we must also identify, mitigate our ability to secure access to new
Risk movement in 2020: Increase and manage any potential negative risks resources, our capacity to attract and retain
inherent in our operations. Areas that we the best talent and ultimately, our financial
carefully monitor and manage to avoid performance. The consequences of
Link to strategic priorities negative impacts include health and adverse community reactions or
safety of our workforce and surrounding allegations of human rights incidents
communities, environmental could also have a material adverse impact
RISK APPETITE management of air, land and water and on the cost, profitability, ability to finance
interactions with individuals and groups or even the viability of an operation and
Low. Our approach is to minimise
who live and work in or near our local the safety and security of our workforce
the impacts of our business, engage
communities. Poor performance could and assets. In addition, global connectivity
openly and honestly to build lasting
contribute to social instability and the means that local issues can quickly
relationships and foster socio-economic
perceived and real value depreciation of escalate to a regional, national and global
resilient communities
our assets. level potentially resulting in reputational
We have a geographically diverse business, damage and social instability.
DESCRIPTION AND operating in both developed and Some of our mining operations are in
POTENTIAL IMPACT developing countries in an array of remote areas where they are a major
different contexts. In a number of regions employer in the region. This presents
Respecting human rights and building
where we operate, the socio-political particular social challenges when the
strong relationships are fundamental
environment is complex which presents mine’s resources are depleted to an extent
to the current and future viability of
additional business, social and security that it is no longer economic to operate
our business.
risks if not well understood and managed. and must be closed. Robust planning
Due to the scale and nature of our While our Group policies and standards and stakeholder engagement are key
business, we have the potential to make a apply to all our businesses, we tailor our to mitigate environmental and social
significant positive contribution to local community approach to be relevant and closure risks.
communities, countries and broader appropriate to the local context
society. Positive impacts range from the

RISK MANAGEMENT
continued
Our first and foremost priority during the

DEVELOPMENTS MITIGATING FACTORS Covid-19 pandemic has been the health
and wellbeing of our employees and
During 2020, Covid-19 impacted people’s We strive to uphold and respect the
communities, especially vulnerable groups.
quality-of-life and increased uncertainty human rights of our workforce, local
At the beginning of the pandemic, we
around the world. communities and others who may be
responded to the immediate medical crisis
The ensuing economic impacts of Covid-19 affected by our activities, in line with the
in our communities by augmenting
have amplified existing inequalities around United Nations Guiding Principles on
communication programs to promote
the world, resulting in an escalation of civil Business and human rights (UN GPs). We
prevention measures, providing basic
unrest in many countries. In the Espinar have processes to identify, prevent and
sanitation and medical materials and
region of Peru, social protests impacted mitigate human rights risks and impacts
supporting local health systems and
our Antapaccay operation. The across our business. In the event that we
services. As time progresses, we will adapt
government deployed public security to cause or contribute to a negative impact
our programs to support economic
return law and order in the region around on human rights, we strive to provide
recovery of our communities and regions.
the operation without harm to community appropriate remedy to those affected in
line with the UN GPs. During 2020, we revised our approach to
members, security forces or our workforce.
ASM to explore how ASM and large-scale
We expect the economic impacts of the We seek to apply the UN Voluntary
mining can sustainably co-exist as distinct
pandemic to continue for some time and Principles on Security and human rights
yet complementary sectors of a successful
our operations will continue to respond by in regions where there is a high risk to
mining industry. We believe that legal ASM
providing social support, in partnership human rights from the deployment of
can play an important and sustainable role
with governments and development public and private security forces.
in many economies when carried out
organisations. We respect communities’ perspectives responsibly and transparently, including
Artisanal and small-scale mining (ASM) and actively seek them to inform our the DRC. One manifestation of our new
continues to be a challenge at certain decision-making. Our ambition is to be approach is our partnership with the Fair
operations, most notably in the DRC. a responsible, engaged and valued Cobalt Coalition, an NGO aiming to
company wherever we operate and positively transform ASM in the DRC. It is
The destruction of Indigenous cultural
contribute to healthy, resilient working towards eliminating child and
heritage during mining activities in
communities. We support the forced labour, improving work practices in
Australia has highlighted the need for
advancement of the interests of both ASM operations and supporting alternative
effective management processes and
our host communities and our assets. livelihoods to help increase incomes and
engagement, to protect areas and items
of cultural significance, and to avoid We seek to build enduring and trusting reduce poverty.
business and reputation risks. relationships by engaging openly and Further information is available on our
honestly and participating as an active website at: glencore.com/sustainability/
member of society. We focus our social community-and-human-rights
investments on initiatives and programs
to deliver long-term benefits fostering
socio-economic resilience.
We implement locally appropriate
complaints and grievance processes and
welcome feedback and comments on our
performance. We review all complaints
received and take actions when necessary
to address the issues raised.

SAFETY
Christine has worked with the Human Resources team at
Sudbury since 2005. Her role encompasses Occupational Health
initiatives, because keeping people safe isn’t only about their
physical safety at work.
“We ask if they are fit for duty, and it’s not just
Christine McGarry
‘do they have something physical that you
can see?’ We also ask about their mental
Labour Relations & Disability wellbeing. Individuals have told us that we
Management Specialist
– Sudbury INO, Canada
have saved their lives, saved their families
and saved their ability to keep working.”
Learn more about our culture and how

we work safely on www.glencore.com
INTEGRITY
Emile has worked as a Legal Counsel for Glencore in the
Democratic Republic of the Congo for four years.
“Integrity is doing the right thing at the right

moment, even when no one is watching. It’s
not always easy to live with integrity. But
Emile Luketa
whatever your background, we all have a
Legal Counsel – Democratic
common ground, and that means we need
Republic of the Congo to live with a sense of wrong and right.”
Learn more about our culture and how we

work with integrity on www.glencore.com
CORPORATE
GOVERNANCE
Chairman’s governance statement 86
Directors and officers 88
Corporate governance report 90
ECC report 95
HSEC report 96
Audit committee report 97
Nomination committee report 99
Directors’ remuneration report 100
Directors’ report 112

CHAIRMAN’S
GOVERNANCE
STATEMENT
Anthony Hayward
Chairman
DEAR SHAREHOLDERS As noted last year, the 2018 UK Corporate Governance Code (the
2020 has seen a marked acceleration in the focus on Code) provides that the chairman should be subject to a nine year
Environmental, Social and Governance issues, and increasing term limit from first appointment as a director. However, the
expectations for transparent and consistent reporting on these Board recommended to shareholders that I remain as Chairman
topics. The actions of the extractives sector necessarily draw while the senior management succession is concluded and for
intense scrutiny from stakeholders and third parties. Companies the ongoing investigations. We have consulted with a number
such as ours must work hard to meet society’s reasonable of our leading shareholders regarding this issue and they support
expectations as to our activities and impacts. a second and final extension to my term as a Chairman which
the Board will recommend to shareholders. I will step down at the
A major challenge for the investment community is the latest by next year’s AGM. A search for my successor is underway.
current alphabet soup of differing reporting requirements
and the varying expectations of stakeholders on ESG matters. The Board continued to focus during 2020 on a range of ESG
We are actively contributing to this debate and look forward issues including:
to progress on a consensus for the requirements for a single Firstly, as I commented on page 1, the various investigations
reporting framework. continue and we remain focussed on having the appropriate
As the CEO and I have emphasised at the beginning of this governance and oversight over our response through our
report, Glencore has an important and critical role in helping the Investigations Committee.
world achieve the goals of the Paris Agreement. Decarbonising Secondly, since his appointment as General Counsel five years ago,
the global energy system requires a significant increase in the Shaun Teichner has worked tirelessly to improve our compliance
supply of the metals needed to electrify energy usage. function across the Group so that it can be considered world class
The challenges in the resources sector require strong leadership and support a strong ethical culture across the Group. Having
and the Board has worked with Ivan over the past two and a half made great strides in this area, last year we reached the point
years to oversee a seamless transition to the next generation of where it was important to have a leader of this function whose
leaders across Glencore’s business. We are confident that Gary sole responsibilities are for compliance. The Company therefore
Nagle, as our next CEO, has the right skill set and qualities to last year appointed a separate Head of Compliance, Daniel Silver.
lead the Glencore of the future. We have now announced the At every set of Board and Committee meetings, we carefully
completion of our management succession plan which by review the progress of our ethics and compliance programme
June this year will have seen all of the senior departmental and in another session, oversee our Raising Concerns programme
management team in place at the time of the Company’s IPO and its related investigations. The Board also separately receives
replaced by internal successors. training on material compliance issues. We have also expanded
our reporting on compliance and I would encourage stakeholders
A significant succession process is also being undertaken within to consider this carefully – see pages 38 to 43.
the Board. At the end of last year Leonard Fischer retired, whom
I thank again for his significant contribution to the Board across Thirdly, Peter Freyberg, as Head of Industrial Assets, continues
nine years, in particular as chair of the Audit Committee and to provide energetic leadership on HSEC matters, strongly
through his insights on financial risk management. In the last supported by our HSEC-Human Rights team. I also encourage
12 months we have been joined by Kalidas Madhavpeddi and careful reading of our work in this area, including the summaries
Cynthia Carroll. We are extremely pleased to have secured such in our Sustainability section – page 32 – and HSEC Committee
strong industry experts. We recognise the importance of avoiding report – page 96. With regard to health and safety, while certain of
groupthink and maintaining strong independence and variety of our operations have particular HSEC challenges, we believe these
thought in the boardroom, but this must not be at the expense are surmountable and are targeting continued improvement, not
of considerable industry knowledge and our Board continues to only to the crucial and humbling fatality number, but also across
reflect this. As we evolve the membership of our Board, we will all sustainability measures for those businesses. Management’s
continue to look to ensure that we have an appropriate mix of work on simplifying our business through the planned disposal
skills, experience and background. of certain of our ‘tail’ assets will also assist with this.

2020 has seen a marked

acceleration in the focus on
Environmental, Social and
Governance issues, and
increasing expectations for
transparent and consistent
reporting on these topics.
Fourthly, our new strategy which we announced in December

is set out in our Climate report 2020: pathway to net zero.
This is the culmination of a lengthy process of detailed analysis
and collaboration by our climate working group which As the CEO and I have
comprises a number of senior people across our businesses
and corporate functions. emphasised at the beginning
Lastly, management broadened the scope of its former Business of this report, Glencore has an
Ethics Committee, which is now the Environmental, Social and
Governance committee, allowing it to focus on key ESG matters
important and critical role in
for the Group. This management committee reports directly to helping the world achieve the
the Board and its Committees, as appropriate. We also initiated
a review of our entire policy architecture and framework and will
goals of the Paris Agreement.
be releasing later this year a complete suite of revised policies,
which have been reviewed and approved by the Board, reflecting
our commitments to operate responsibly and ethically.
We trust that this annual report provides a considered yet
concise overview of our business and its governance.
Tony Hayward
Chairman
10 March 2021

DIRECTORS AND OFFICERS
Directors
EXPERIENCE EXPERIENCE
Dr Hayward is managing partner Initially worked in Glencore’s coal
of St James’s Asset Management, department in South Africa as
a partner and member of the a marketer. Following time in
European advisory Board of AEA Australian and Asian offices, in 1990
Capital and has other private he was made head of Glencore’s coal
equity interests. marketing and industrial businesses,
He was CEO of BP plc from 2007–10, and remained in this role until he
having joined BP in 1982. He became became Group CEO in January 2002.
group treasurer in 2000, chief Mr Glasenberg is a Chartered
executive for BP upstream activities Accountant of South Africa, holds a
Anthony Hayward and a member of the main board of Ivan Glasenberg Bachelor of Accountancy from the
BP in 2003. University of Witwatersrand and an
Chairman (63) From 2011–15 he was founder and Chief Executive Officer MBA from the University of Southern
E H I
CEO of Genel Energy plc and (64) California.
chairman from 2015–17.
Chairman since May 2013; he Dr Hayward studied geology at Aston H
joined the Board in 2011 as the University in Birmingham and Joined Glencore in April 1984;
Senior Independent Director. completed a Ph.D at Edinburgh Chief Executive Officer since
Chair of Nomination Committee University. He is a fellow of the Royal January 2002.
during 2019. Society of Edinburgh.
Mr Gilbert is chairman of Revolut Mr Coates worked in senior positions
Limited and deputy chairman of River in a range of resource companies
and Mercantile Group PLC (LON:RIV). before joining Glencore’s coal unit as a
Mr Gilbert co-founded Aberdeen Asset senior executive in 1994. When
Management in 1983, leading the Glencore sold its Australian and
company for 34 years and overseeing South African coal assets to Xstrata
its 2017 merger with Standard Life. He in 2002 he became CEO of Xstrata’s
is also chair of Toscafund and a coal business, stepping down in
non-executive director of ASSETCO December 2007.
and Saranac Partners. He was deputy He was non-executive chairman of
Martin Gilbert chair of the board of Sky PLC until 2018. Peter Coates AO Xstrata Australia (2008–09), Minara
He was formerly co-CEO of Standard Resources Ltd (2008–11) and Santos
Senior Independent Life Aberdeen and co-founder of Non-Executive Director Ltd (2009–13 and 2015–18). He is
Director (65) Aberdeen Asset Management, (75) currently a non-executive director of
which was established in 1983. Event Hospitality and Entertainment
A I R Mr Gilbert is a member of the E H Ltd (ASX:EVT).
International Advisory Board of British Mr Coates holds a Bachelor of Science
Senior Independent Director Non-Executive Director since
American Business. degree in Mining Engineering from
since May 2018; appointed in January 2014; previously Executive
Mr Gilbert was educated in Aberdeen. the University of New South Wales. He
May 2017. Director from June to December
He has an LLB, an MA in Accountancy was appointed as an Officer of the
2013 and Non-Executive Director
and is a Chartered Accountant. Order of Australia in June 2009 and
from April 2011 to May 2013.
awarded the Australasian Institute of
Mining and Metallurgy Medal for 2010.
Following initial roles with Molson and Mr Mack is a non-executive director of
Canadian Pacific, Ms Merrin worked at New Fortress Energy (NASDAQ:NFE)
Sherritt for ten years until 2004, latterly and also serves on the board of Tri
as COO. She then became CEO of Alpha. He also serves on the board of
Luscar. She is currently a non-executive Trustees of New York-Presbyterian
director of Samuel, Son & Co. Limited. Hospital and the University Hospitals
She has been a non-executive chair of of both Columbia and Cornell.
Detour Gold Corporation (TSX:DGC) Mr Mack previously served as CEO of
from June 2019 to January 2020 and Morgan Stanley from 2005–09. He
non executive director of Stillwater retired as chairman in 2011. Mr Mack
Patrice Merrin Mining Company (NYSE:SWC) from John Mack first joined Morgan Stanley in May
2013 to 2017. Ms Merrin chaired CML 1972, becoming a board director in
Non-Executive Director Healthcare and was also a director of Non-Executive Director 1987 and president in 1993.
(72) Arconic Inc., NB Power, and the Alberta (76) From 2001 to 2005, Mr Mack served
Climate Change and Emissions as co-CEO of Credit Suisse.
E H I N Management Corporation. Ms Merrin R N Mr Mack is a graduate of Duke
Appointed in June 2014. is a graduate of Queen’s University, University.
Ontario and completed the Advanced Appointed in June 2013.
Chair of Nomination Committee
Management Programme at INSEAD.
from 2020.

Ms Marcus was Governor of the South Mr Madhavpeddi has over 40 years of
African Reserve Bank from 2009–14. experience in the international
She worked in exile for the African mining industry, including being
National Congress from 1970 before CEO of China Molybdenum
returning to South Africa in 1990. In International from 2008 to 2018. His
1994 she was elected to the South career started at Phelps Dodge,
African Parliament. In 1996 she was where he worked from 1980 to 2006,
appointed as the deputy minister of ultimately becoming senior VP
finance and from 1999 to 2004 was responsible for the company’s global
deputy governor of the Reserve Bank. business development, acquisitions
Gill Marcus Ms Marcus was the non-executive Kalidas Madhavpeddi and divestments, as well as its global
chair of the Absa Group from 2007–09 exploration programs. Mr
Non-Executive Director and has been a non-executive director Non-Executive Director Madhavpeddi is currently a director
(71) of Gold Fields Ltd and Bidvest. She has (65) of Novagold Resources (TSX: NG),
acted as chair of a number of South Trilogy Metals (TSX:TMQ), and
A E African regulatory bodies. From 2018 to A N R Dundee Precious Metals Inc (TSX:
2019, she was appointed to the Judicial DPM). He was formerly director and
Appointed in January 2018. Commission of Inquiry into allegations Appointed in February 2020. chair of the governance committee
Member of Nomination of impropriety at the Public of Capstone Mining (TSX:CS). He has
Committee during 2019. Investment Corporation. Ms Marcus degrees from the Indian Institute of
is a graduate of the University of Technology, Madras, India and the
South Africa. University of Iowa and has completed
the Advanced Management
Program at Harvard Business School.
Notes
EXPERIENCE All the Directors are non-executive apart from Mr Glasenberg. The
Non-Executive Directors are designated as independent apart from
Ms Carroll has over 30 years’ experience
Mr Coates and Dr Hayward. Committee membership is as follows:
in the resources sector. She began her
career as an exploration geologist at
Amoco before joining Alcan. She held A Audit
various executive roles there
culminating in being CEO of the
Primary Metal Group, Alcan’s core E Ethics, Compliance and Culture (ECC)
business. From 2007 to 2013 she served
as CEO of Anglo American plc. H Health, Safety, Environment and Communities (HSEC)
Ms Carroll is currently a non-executive
Cynthia Carroll director of Hitachi, Ltd (TYO: 6501),
Baker Hughes Company (NYSE: BKR) I Investigations
Non-Executive Director and Pembina Pipeline Corporation
(64) (TSE: PPL). N Nomination
She is a fellow of the Royal Academy of
H Engineers and a Fellow of the Institute
of Materials, Minerals and Mining.
R Remuneration
Appointed in February 2021.
Ms Carroll holds a Bachelor’s degree in
Geology from Skidmore College (NY), denotes Committee chair
a Master’s degree in Geology from the
University of Kansas and a Master’s in
Business Administration from Harvard Board diversity
University. page 91
Officers
Mr Kalmin joined Glencore in From 2006 to 2011, Mr Burton was
September 1999 as general manager company secretary and general
of finance and treasury functions at counsel of Informa plc, where he
Glencore’s coal industrial unit in established the group legal function
Sydney. He moved to Glencore’s head and a new company secretarial team.
office in 2003 to oversee Glencore’s Before that he had been a partner of
accounting functions, becoming CFO CMS in London for 8 years, advising
in June 2005. From November 2017 to on a broad range of corporate and
June 2020 he was a director of securities law matters.
Katanga Mining Limited (TSX: KAT). Mr Burton holds a B.A. degree in Law
Steven Kalmin Mr Kalmin holds a Bachelor of John Burton from Durham University. He was
Business (with distinction) from the admitted as a Solicitor in England
Chief Financial Officer University of Technology, Sydney and is Company Secretary and Wales in 1990.
(50) a member of Chartered Accountants (56)
Australia and New Zealand and the
Appointed as Chief Financial Appointed Company Secretary
Financial Services Institute of
Officer in June 2005. in September 2011.
Australasia.
Before joining Glencore, Mr Kalmin
worked for nine years at Horwath
Chartered Accountants.

CORPORATE Roles and responsibilities
GOVERNANCE
CHAIRMAN
• Leading the Board
• Shaping the culture in the boardroom
REPORT
• Promoting sound and effective Board governance
• Ensuring effective communication with shareholders
• Leading the annual performance evaluation of the Board
This report should be read in conjunction SENIOR INDEPENDENT DIRECTOR
with the Directors’ report and the • Acting as confidant of the Chairman and, when
remainder of the Governance section appropriate, as an intermediary for other independent
Directors
• Acting as Chair of the Board if the Chairman is unable
to attend
BOARD GOVERNANCE AND STRUCTURE • Leading the Chairman’s performance appraisal along with
This Governance report, along with the Strategic report and the other independent Directors
Directors’ report, sets out how Glencore has applied the principles • Answering shareholders’ queries when usual channels of
of the 2018 UK Corporate Governance Code (the Code) in a communication are unavailable
manner which enables shareholders to evaluate how these
CHIEF EXECUTIVE OFFICER
principles have been applied. The Board believes that the
Company has throughout the year complied with all relevant • Leading the management team
• Developing the Group’s strategy in conjunction with
provisions contained in the Code.
the Board
In accordance with provisions 10 and 19 of the Code, the following • Implementing the decisions of the Board and its
serves as explanation for the extended tenure of Mr Leonhard Committees
Fischer and Dr Anthony Hayward: • Achieving the Group’s commercial objectives
• Developing Group policies and ensuring effective
• For the period from May until August, Mr Fischer remained as implementation
the Audit Committee chair despite having served for nine years
on the Board. As recorded in last year’s annual report, major OTHER NON-EXECUTIVE DIRECTORS
shareholders had been consulted on this temporary extension. • Challenging the Chief Executive Officer and senior
Mr Fischer retired from the Board in December 2020. He was management constructively
considered to remain independent throughout this time. • Bringing an independent mindset and a variety of
backgrounds and experience around the Board table
• Last year we consulted with our largest institutional
• Providing leadership and challenge as chairs or members
shareholders regarding Dr Hayward’s tenure on the Board as of the Board Committees, which (except HSEC) comprise
he exceeded nine years in 2020. This had clear support and the only Non-Executive Directors
shareholder vote at the 2020 AGM in favour of Dr Hayward’s • Assisting the Senior Independent Director in assessing the
reappointment was 96% of those cast. The Board reconsidered Chairman’s performance and leadership
this position this year and continues to believe that, due to the
management succession taking place and the ongoing COMPANY SECRETARY
investigations, it is in the shareholders’ interest that he remains • Ensuring that Board procedures are complied with and
as Chairman for a second and final additional year. The Board that papers are provided in sufficient detail and on time
has also obtained shareholder support for this position in a • Informing and advising the Board on all governance
similar consultation carried out in recent months. matters
• Informing the Board on all matters reserved to it
During 2020 the Board comprised either seven or eight Non- • Assisting the Chairman and the Board regarding the
Executive Directors (including the Chairman) and one Executive annual performance evaluation process
Director. A list of the current Directors, with their brief biographical
details and other significant commitments, is provided in the
previous pages. Mr Madhavpeddi joined the Board in February Board attendance throughout the year
2020. In August 2020, he replaced Mr Fischer as chair of the Audit
Committee. On 2 February 2021, Ms Cynthia Carroll was appointed Attendance during the year for all scheduled full agenda Board
as Non-Executive Director. and all permanent Board Committee meetings is set out in the
The Chief Financial Officer attends all meetings of the Board and table below:
Board HSEC ECC Audit Rem Nom
Audit Committee. The Company Secretary attends all meetings of 6 of 5 of 5 of 5 of 2 of 5
of the Board and its Committees. Anthony Hayward 6 5 5 1
Division of responsibilities Peter Coates 6 5 5
As a Jersey incorporated company, Glencore has a unitary Board, Leonhard Fischer¹ 6 3 1 1

meaning all Directors share equal responsibility for decisions Martin Gilbert 6 5 2
taken. Glencore has established a clear division between the Ivan Glasenberg 6 5
respective responsibilities of the Non-Executive Chairman and
John Mack 6 2 5
the Chief Executive Officer, which are set out in a schedule of
responsibilities approved by the Board and reviewed annually. Kalidas
Madhavpeddi² 6 2 1 4
While the Non-Executive Chairman is responsible for leading the
Board’s discussions and decision-making, the CEO is responsible Gill Marcus³ 6 5 5 1
for implementing and executing strategy and for leading Patrice Merrin⁴ 6 5 5 4
Glencore’s operating performance and day-to-day management. 1 Mr Fischer attended all meetings while he was a member of the committees
The Company Secretary is responsible for ensuring that there is 2 Mr Madhavpeddi attended all meetings after his appointment to the Committees
clear and effective information flow to the Non-Executive Directors. (including as chair of the Audit Committee)
3 Ms Marcus stepped down from the Nomination Committee after its first meeting of
The CEO, CFO and General Counsel have line of sight across the the year
Group. Together with the Head of Industrial Assets, they lead our 4 Ms Merrin attended all meetings of the Nomination Committee after her
appointment as chair.
management team supported by the heads of each marketing
and industrial division and the heads of corporate functions. In addition, there were another 6 limited agenda meetings of the Board. Most
Directors also attend by invitation the meetings of the Committees of which they
are not members.
Board diversity and experience

Tony Ivan Martin Cynthia Peter John Gill Patrice Kalidas
Hayward Glasenberg Gilbert Carroll Coates Mack Marcus Merrin Madhavpeddi
British S. African British American Australian American S. African Canadian American
Experience
Resources
Non-executive
directorship
C-suite
Global transactions
Technical Skills*
Leadership & Strategy
Financial Expertise
Ethics & Governance
Health & Safety
Investor Relations 0–2 yrs

3–6 yrs
Communications 7–9 yrs
& Reputation 9+ yrs
Risk Management
*The majority of these skills have been acquired through exposure and experience at leadership level, not usually as part of a formal education.
Board tenure 0–2 yrs

3–6 yrs
Board gender Male
Female
7–9 yrs
9+ yrs
Senior Independent Director Male Management of conflicts of interest

Female
Mr Gilbert is the Senior Independent Non-Executive Director. He is All Directors endeavour to avoid any situation of conflict of interest
available to meet with shareholders and acts as an intermediary with the Company. Potential conflicts can arise and therefore
between the Chairman and other independent Directors when processes and procedures are in place requiring Directors to
required. This division of responsibilities, coupled with the identify and declare any actual or potential conflict of interest. Any
schedule of reserved matters for the Board, ensures that no notifications are required to be made by the Directors prior to, or
individual has unfettered powers of decision. Further details at, a Board meeting and all Directors have a duty to update the
of these responsibilities are set out on page 90. whole Board of any changes in circumstances. Glencore’s Articles
of Association and Jersey law allow for the Board to authorise
Non-Executive Directors potential conflicts and the potentially conflicted Director must
The Company’s Non-Executive Directors provide a broad range of abstain from any vote accordingly. During the year, no abstention
skills and experience to the Board (see table above), which assists procedures for conflicts had to be activated.
in their roles in formulating the Company’s strategy and in
providing constructive challenge to executive management. Related Party Transactions
Glencore regularly assesses its Non‑Executive Directors’ In the course of its business, the Group enters into transactions
independence. Except for Mr Peter Coates (and Mr Fischer from with organisations which may constitute related parties.
May to December 2020), who was first appointed to the board All material related party transactions are required to be reviewed
in May 2011 and the Chairman, all are regarded by the Board as and approved by the Board. If a conflict exists for a Director, he or
Independent Non-Executive Directors within the meaning of she will not be allowed to vote on the resolution approving the
“independent” as defined in the Code and free from any business transaction, as noted above. Additionally, the Company seeks
or other relationship which could materially interfere with the advice whenever an assessment is to be made as to whether
exercise of their independent judgement. any material transaction may be a related party transaction
under the terms of FCA Listing Rule 11.
During the year the Board reviewed the proposed sale of our
73% interest in Mopani to ZCCM, a 10% shareholder in Mopani.
Transactions between the Group and its significant joint
ventures and associates are summarised in note 32 to the
Financial Statements.

CORPORATE GOVERNANCE REPORT • In recognition of the desire of shareholders to have the
continued opportunity directly to advise the Company of their opinion on
its plans and their implementation, the Board has resolved to
follow the same shareholder engagement model which it uses
for remuneration by which a policy is issued at least every three
Acquisition and disposal of assets years and a report is published annually on the implementation
The Board reviews and approves all material proposed of that policy, each of which is to be put to an advisory vote.
transactions, including acquisitions and disposals of assets.
Additionally, there is an assessment as to whether material Board meetings
transactions comply with FCA Listing Rule 10 requirements. The Board has approved a schedule that sets out the matters
If required, the Board may engage an independent third party reserved for its approval, including Group strategy, financial
adviser to review the proposed transaction and provide an statements and annual budget, and material acquisitions and
independent opinion for the Board to assist in its decision making. disposals. Meetings are usually held at the Company’s
headquarters in Baar, Switzerland. However, during 2020, due to
Board Committees travel restrictions, most Directors were unable to attend most of
The following permanent Committees are in place to assist the the meetings in person.
Board in exercising its functions: Audit, Nomination, Details of the main matters considered by Board and Committee
Remuneration, HSEC and ECC. The Board is provided with meetings held during the year are detailed on page 93.
technical and commercial updates as appropriate during the year, The Board and its Committees have standing agenda items to
including as to compliance and our Raising Concerns cover their proposed business at their scheduled meetings. The
programme. The Board may also establish temporary committees Chairman seeks to ensure that the very significant work of the
for specific purposes, such as the Investigations Committee. As Committees feeds into, and benefits as to feedback from, the full
each Committee reports to the Board, meetings are held prior to Board. The Board and Committee meetings receive support from
Board meetings, during which the chair of each Committee leads senior management through reports and presentations, which
a discussion concerning the Committee’s activities since the among others vary from operational, financial, audit, risk, legal
previous Board meeting. and compliance, governance, and investor relations to cover all
A report from each chair of the permanent Committees is set out aspects of the Group. These reports and presentations allow
later in this Corporate Governance report. Directors to further their understanding of the business and
All permanent Committees’ terms of reference are available at: provide the insights necessary for defining the Company’s
glencore.com/who-we-are/governance strategy and objectives, in turn contributing to a more effective
Board. A summary of the Board’s main activities last year is set out
Each Committee reports to, and has its terms of reference
on the next page.
approved by, the Board and the minutes of the Committee
meetings are circulated to the Board. Each Committee
regularly reviews its terms of reference to ensure they reflect
the Board’s expectations as to the Committee’s role as well
as the latest corporate governance requirements and
recommended practices.
Investigations
In July 2018, following receipt of a subpoena from the US Corporate Governance
Department of Justice (DOJ), the Board reconstituted the then
existing Investigations Committee to direct the Company’s
response. The Investigations Committee’s mandate has continued
and includes oversight of the Company’s response to all the
investigations listed in note 31. The committee has operated
entirely separately from the Group’s executives, who have no
Shareholders
decision-making power concerning the investigations. It also
monitors the Group’s exposure arising from the investigations and
concludes on the appropriate disclosure in the financial
statements: see note 31 for further details. Chief Executive
Oversight of management of climate-related risks and Elect Officer
opportunities Directors and
Ongoing
Chief Financial
Climate change is a Board-level standing agenda item. In 2020, engagement Officer
our climate change programme and performance were overseen
by the Health, Safety, Environment & Communities Committee,
which reviewed progress at all of its five meetings. The
development and implementation of the programme are the
responsibility of the Climate Change Working Group, which was Audit
committee
first established in 2017, and which is chaired by the Chairman and
includes the CEO and other members of the senior management Board of
team. In 2020, this Working Group oversaw the development and Directors
publication of our climate commitments, as well as the
publication of our 2020 Climate Report. Remuneration
committee
Going forward, and in recognition of the significance of climate
change for Glencore and its stakeholders, the Board has Investigations
mandated the following measures: committee
Nomination
• The Climate Change Working Group will continue to oversee committee
the climate programme. The CEO will assume the role of the ECC
HSEC
chairman of the Working Group, and will report directly to the committee
committee
Board on progress at its meetings.

Board and Committees’ activities during 2020

Below are details of the main topics which were reviewed, discussed, and when required, approved by the Board during 2020::
Regular updates Financial & Risk Governance & Stakeholders

• Chairman’s report • Finance reports, forecasts • Annual report
• Reports from Committee Chairs and capital position updates • AGM and voting results
• Reports from CEO, CFO, • Plan to manage remote • Investor relations reports
Company Secretary, General working risks • Analysts updates
Counsel and senior • 2021 budget/2022–24 business plan • Corporate governance
management • Capital management programmes framework
• Group performance report • Financial statements • Stakeholder engagement
• Customer performance • Group risk appetite
dashboard • Group risk management
framework
Legal, Regulatory Health, Safety & Environment Other activities

& Compliance • Fatalities, major incidents and • Covid-19 related activities
• Group policies other safety issues including analysis of risk and
• Legal matters updates and • Environmental incidents reports checking procedures across all
investigations • Climate target and ambition aspects of the business including
• Regulatory & Compliance development financial and risk, compliance
updates and HSEC
• Human Rights and
• Group Ethics and Compliance Communities reports • Board and Directors’ evaluation
Programme • Progress in meeting our carbon • Chairman’s performance
• Raising Concerns reports targets and performance • Succession planning for Board
• Tailings Storage Facilities reviews and senior management
• Supply chain traceability • Senior management
remuneration
Appointment of Non-Executive Directors functions, the roles and responsibilities of a UK premium listed
All the Non-Executive Directors have letters of appointment and company director, and the Company’s Code of Conduct.
the details of their terms are set out in the Directors’ remuneration The Directors receive training on legal and compliance topics and
report. No other contract with the Company or any subsidiary regular updates on relevant business and governance matters.
undertaking of the Company in which any Director was materially
interested existed during or at the end of the financial year. BOARD PERFORMANCE AND EFFECTIVENESS
Since an external evaluation was carried out during 2018 and no
Information, management meetings, site visits material governance issue arose during 2020, a performance
and professional development evaluation was conducted internally.
It is considered essential that the Non-Executive Directors attain As part of this process, each Director completed questionnaires
a good knowledge of the Company and its business and allocate that covered various key indicators of Board and Committee
sufficient time to Glencore to discharge their responsibilities performance and effectiveness, including the findings from the
effectively. The Board calendar is planned to ensure that Directors previous evaluation (summarised in the 2019 Annual Report).
are briefed on a wide range of topics. Results were provided to the Chairman and the Senior
During 2020, most planned site visits were cancelled due to the Independent Director by the Company Secretary.
global pandemic. However, various virtual site engagements took Final results were presented to the Board collectively
place – see page 29. for discussion.
All Directors have access to the advice and services of the Issues of focus raised for the Board included:
Company Secretary, who is responsible to the Board for ensuring
the Board procedures are complied with and have access to • health and safety, especially fatalities reduction
independent and professional advice at the Company’s expense, • progressing the investigations
where they judge this to be necessary to discharge their • refreshment of the Board including diversity and strong
responsibilities as Directors. resource industry experience
• senior management transition
DIRECTOR INDUCTION AND INFORMATION
• more active remuneration committee
New Directors receive a full, formal and tailored induction on
• more work on succession planning
joining the Board, including meetings with senior management.
• new carbon strategy
The induction process of Cynthia Carroll has commenced and
• risk management, compliance, culture and internal
will continue throughout the year, including a comprehensive
audit/controls
introduction to the main aspects of the Group, its business and

CORPORATE GOVERNANCE REPORT
continued
DIVERSITY Corporate Reporting Review

The diversity policy which is applied to appointments to our The UK Financial Reporting Council (FRC) reviewed Glencore’s
administrative, management and supervisory bodies with regard annual report for the year ended 31 December 2019 as part of
to aspects such as age, gender, or education and professional its regular monitoring of the Directors’ reports and accounts
backgrounds is the same as for all Group employees. of public and large private companies.
The Board is very cognisant of the ongoing desire from The principal areas where the FRC raised questions were:
stakeholders for greater diversity in senior management and impairment; climate change disclosures in the strategic report;
boards. In particular, leading UK institutional shareholders have segments; and alternative performance measures. We provided
set a target for women to comprise 33% of senior management the FRC with the information it requested and its enquiries are
and boards of FTSE 100 companies by the end of 2020. This board now closed having been brought to a satisfactory conclusion.
target was achieved on 2 February 2021. For senior management, The FRC requested undertakings and suggested improvements
while we support the aims of diversity, we do not believe that a as to additional disclosures concerning these topics to be made in
one size fits all policy is appropriate or currently achievable. Still future reporting (including in this report).
today we find it challenging to fill senior positions in remote mining
The review was based solely on the published annual report and
locations and for the marketing of commodities, by women.
accounts and provides no assurance that the annual report and
ACCOUNTABILITY AND AUDIT accounts are correct in all material respects. The FRC’s role is not
to verify the information provided but to consider compliance
Financial reporting with reporting requirements.
The Group has in place a comprehensive financial review cycle,
which includes a detailed annual planning/budgeting process INTERACTIONS WITH SHAREHOLDERS
where business units prepare budgets for overall consolidation The Board aims to present a balanced and clear view of the
and approval by the Board. The Group uses many performance Group in communications with shareholders and believes that
indicators to measure both operational and financial activity in being transparent in describing how we see the market and
the business. Depending on the measure, these are reported the prospects for the business is extremely important.
and reviewed on a daily, weekly or monthly basis. In addition,
We communicate with shareholders in a number of different
management in the business receives weekly and monthly
ways. The formal reporting of our full- and half-year results and
reports of indicators which are the basis of regular operational
quarterly production reports is achieved through a combination
meetings, where corrective action is taken if necessary. At a Group
of releases, presentations, group calls and individual meetings.
level, a well-developed management accounts pack, including
The full- and half-year reporting is followed by investor meetings
income statement, balance sheet, cash flow statement as well as
across a variety of locations where we have institutional
key ratios is prepared and reviewed monthly by management. As
shareholders. We also regularly meet with existing and
part of the monthly reporting process, a reforecast of the current
prospective shareholders to update or to introduce them to the
year projections is performed. To ensure consistency of reporting,
Company and, although it was not possible in 2020 due to the
the Group has a global consolidation system as well as a common
global pandemic, we usually arrange periodic visits to parts of
accounting policies and procedures manual. Management
the business to give analysts and major shareholders a better
monitors the publication of new reporting standards and works
understanding of how we manage our operations. These visits
closely with our external auditors in evaluating any impact.
and meetings are principally undertaken by the CEO, CFO,
Risk management and internal control Head of Industrial Assets and senior members of the Investor
Relations team.
The Board has applied provisions 28 to 31 of the Code by
establishing an ongoing process for identifying, evaluating and In addition, many major shareholders have meetings with the
managing the risks that are considered significant by the Group Chairman and appropriate senior personnel, including other
in accordance with the revised Guidance on Internal Control Non‑Executive Directors, the Company Secretary and senior
published by the Financial Reporting Council. This process has members of the Sustainability team. The matters covered by
been in place for the period under review and up to the date of meetings with the Chairman and Company Secretary include
approval of the Annual Report and financial statements. The the work of the Board’s committees.
process is designed to manage and mitigate rather than This year, following the introduction of Covid-19 related restrictions,
eliminate risk, and can only provide reasonable and not absolute almost all of these engagements have taken place virtually.
assurance against material misstatement or loss. The Directors
confirm that they have carried out a robust assessment of the AGM
principal and emerging risks facing the Group and have reviewed The Company’s next AGM is due to be held on 29 April 2021.
the effectiveness of the risk management and internal control Full details of the meeting will be set out in the AGM notice of
systems. This review excludes associates of the Group as Glencore meeting. All documents relating to the AGM will be available on
does not have the ability to dictate or modify the internal controls the Company’s website at: glencore.com/agm
of these entities. This report describes how the effectiveness of the
Group’s structure of internal controls including financial,
operational and compliance controls and risk management
systems is reviewed: see pages 70 to 84 which include detailed
information on the Group’s principal risks.

ETHICS, COMPLIANCE
AND CULTURE (ECC)
REPORT
The Committee met five times during the year. Each Committee
member served throughout the year and attended all of the Anthony Hayward
meetings. Nicola Leigh is the secretary of this Committee.
Chair
RESPONSIBILITIES
The main responsibilities of the Committee are:
• Overseeing the implementation of the Group Ethics and Other members
Compliance Programme including Group policies, standards, Patrice Merrin
procedures, systems and controls for the prevention of Gill Marcus
unethical business practices and misconduct Peter Coates
• Reviewing reports and the activities of the following
management committees: ESG Committee (formerly business
ethics committee) and business approval committee (see page
39 for further information) Workforce Engagement
• Assessing and monitoring culture to ensure alignment with the • Management of health related concerns, policies and
Company’s purpose and values communications was considered both before and after the
• Monitoring the Group’s stakeholder engagement effects of Covid-19.
• Consideration of HR Group policies, standards, legislative
MAIN ACTIVITIES compliance around the globe and greater use of technology.
During the year, the Committee’s activities included the following: • Consideration of the employee campaign in respect of the
Group’s purpose and values.
Ethics and Compliance
• Reporting on culture surveys: (1) the marketing business and (2)
• Provided oversight of the key elements of the Ethics and
the Group as a whole. Employee attitudes to the Group’s values,
Compliance programme, including risk assessments, internal
its commitment to ethical behaviour and scores covering the
monitoring, training and awareness, and reviews conducted
compliance programme were considered in particular.
by third party specialists
• As part of the Committee’s role in assessing and monitoring
• Reviewed the implementation and effectiveness of the Ethics
Group culture, it was expected that members of the Committee
and Compliance Programme
would hold a series of meetings that would take place with
• Reviewed the compliance structure and resourcing to assess members of our workforce in various locations across the Group.
whether it is sufficient for the Group Initially these plans were put on hold due to Covid-19, but once
• Considered a variety of other material ethics and compliance it became clear in the second half of the year that in-person
issues. meetings would be impractical, a series of virtual engagements
• Reviewed the Whistleblowing, Raising Concerns and was established.
Investigations framework and reviewed and recommended to
Engagement by the Board and senior management is included
the Board revised policies for Anti-Corruption, Whistleblowing
in Our people section, on page 27.
and Competition Law
• Considered the effect of Covid-19 on the efficacy of the Group
Ethics and Compliance programme Tony Hayward
Chair of the ECC Committee
Stakeholder engagement 10 March 2021
• Reviewed our ESG engagement, including with NGOs and
multi-stakeholder organisations that invest or engage on
ESG issues, and track the development of reporting on ESG
related topics.
• Considered the conduct and positions of our member
organisations during 2020 on material issues in accordance
with our Political Engagement Policy. This included a detailed
analysis of activities across the main countries in which the
Group operates and the organisations either of the globally
ambit or in those countries to which Group companies are
current members.

HEALTH, SAFETY,
ENVIRONMENT
& COMMUNITIES
(HSEC) REPORT
Peter Coates
Chair
The Committee met five times during the year. Each Committee
member served throughout the year and attended all of the
meetings. Every scheduled meeting had a substantial agenda, Other members
reflecting the Committee’s objective of monitoring the Ivan Glasenberg
achievement by management of ongoing improvements in Anthony Hayward
HSEC performance. Patrice Merrin
John Burton is the Secretary of this Committee.
RESPONSIBILITIES
• Health and Safety: review of each fatality occurring with
The main responsibilities of the Committee are: emphasis on lessons to be learned across the Group; oversight
• Ensuring that appropriate Group policies are developed in line of a revamping of leadership of fatality investigations including
with our Values and Code of Conduct for the identification and a training programme; reviews of critical incidents and trends in
management of current and emerging health, safety, TRIFR, LTIFR, HPRIs and other relevant statistics
environmental, community and human rights risks • Environment: assessing the Group’s strategy concerning GHG
• Ensuring that the policies are effectively communicated emissions, energy, water and stewardship and other impacts
throughout the Company and that appropriate processes and • Communities: reviewing material issues, investigations
procedures are developed at an operational level to comply and and complaints
evaluate the effectiveness of these policies through: • Social and human rights: monitoring the Group’s strategy
and reviewing serious incidents
‒ assessment of operational performance
• Assurance: reviewing work of the HSEC Audit function
‒ review of updated internal and external reports including its training activities
‒ independent audits and reviews of performance with regard • Enterprise Risk Management: overseeing the development
to HSEC matters, and action plans developed by of a new ERM standard for the industrial business
management in response to issues raised
• Tailings storage facilities: overseeing the work on the Global
• Evaluating and overseeing the quality and integrity of any Tailings Review Standard and the internal work on the Group’s
reporting to external stakeholders concerning HSEC matters facilities, particularly those designated as high risk
• Reporting to the Board • External affairs: monitoring the Group’s external HSEC
reporting, continuing engagement on material issues and
MAIN ACTIVITIES stakeholder and investor engagement
During the year, the Committee engaged in: • Other matters: Considering a variety of other material
HSEC issues
• HSEC Strategy: reviewing the Group’s annual HSEC strategy
and its implementation
• Governance: approved new and revised key HSEC and human Peter Coates
rights policies Chair of the HSEC Committee
• Health and Safety: overseeing the Group’s fatality reduction 10 March 2021
programme including:
‒ eight deep dive SafeWork (including fatal hazard)
assessments;
‒ commencement of the project SafeWork 2.0;
‒ implementation of the zinc and copper departments’ safety
cases (including presentations at every meeting through
the year); and
‒ progress against the corporate led-Kazzinc safety intervention
‒ strengthening of investigation process, including
targeted training

AUDIT COMMITTEE
REPORT
Kalidas Madhavpeddi
Chair
The Committee met five times during the year. Leonhard Fischer
stepped down as chair of the Committee in August 2020 and
was replaced by Kalidas Madhavpeddi. The other Committee Other members
members served throughout the year and attended all of the Martin Gilbert
meetings. All current Committee members are considered by Gill Marcus
the Board to be Independent Non-Executive Directors and to be
financially literate by virtue of their relevant financial experience.
As a whole, the Committee has the skills and experience relevant • Reviewing the Group’s internal financial controls and financial
to the sector. risk management systems
John Burton is Secretary to the Committee. • Considering the output from the Group-wide processes used
The Committee usually invites the CEO, CFO, General Counsel, to identify, evaluate and mitigate financial risks, including
Group Financial Controller, Chief Risk Officer and Head of Internal credit and performance risks, across the industrial and
Audit and the lead partner from the external auditor to attend marketing activities
each meeting. Other members of management and the external • Monitoring and reviewing the effectiveness of Glencore’s
auditor may attend as and when required. Other Directors also internal controls for which there were certain control
usually attend its meetings. weaknesses noted by our auditor in their report on
Additionally, the Committee holds closed sessions with the page 118. Management is currently working on
external auditors and the Head of Internal Audit without remediating these matters.
members of management being present. The Committee has • Reviewing the global audit plan, scope and fees of the audit
adopted guidelines allowing certain non-audit services to be work to be undertaken by the external auditor
contracted with the external auditors. • Recommending to the Board a resolution to be put to the
shareholders for their approval on the appointment of the
ROLE AND RESPONSIBILITIES external auditor and to authorise the Board to fix the
The primary function of the Committee is to assist the Board remuneration and terms of engagement of the external auditor
in fulfilling its responsibilities with regard to financial reporting, • Monitoring the independence of the external auditor and the
external and internal audit, financial risk management operation of the Company’s policy for the provision of non-audit
and controls. services by it
During the year, the Committee’s principal work included • Reviewing the Internal Audit department’s annual audit plan
the following:
RISK ANALYSIS
• Reviewing the full-year and half-year financial statements with
The Committee receives reports and presentations at each
management and the external auditor
meeting on management of marketing and other risks (excluding
• Considering the scope and methodologies to determine the operational and sustainability risks which are reviewed by the
Company’s going concern and longer-term viability statements HSEC Committee and compliance risks which are reviewed by the
• Reviewing and agreeing the preparation and scope of the ECC) and at least once a year considers an in-depth study of the
year-end reporting process perceived main risks and uncertainties and the Group’s risk
• Considering applicable regulatory changes to reporting management framework as a whole.
obligations
• Evaluating the Group’s procedures for ensuring that the SIGNIFICANT ISSUES
Annual Report and accounts, taken as a whole, are fair, The Committee assesses whether suitable accounting policies,
balanced and understandable including the implementation of new accounting standards, have
• Reviewing the Group’s financial and accounting policies and been adopted and whether management has made appropriate
practices including discussing material issues with estimates and judgements. It also reviews the external auditor’s
management and the external auditor, especially matters reports outlining audit work performed and conclusions reached
that influence or could affect the presentation of accounts and in respect of key judgements, as well as identifying any issues in
key figures respect of these reports.

CORPORATE GOVERNANCE REPORT
continued
During the year, the Committee has focused in particular on these 6. Counterparty exposures
key matters: The Group’s global operations expose it to credit and performance
1. Audit plan review risk, which result in the requirement to make estimates around
recoverability of receivables, loans, trade advances and contractual
In addition to the review of key developments and audit risks non-performance. As part of an ongoing review, the Committee
central to planning for the half year review and annual audit, the considered material continuing exposures, the robustness of
Committee also considered particular issues in response to processes followed to evaluate recoverability and whether the
Covid-19, including fraud risk factors, re-assessment of internal amounts recorded in the financial statements are reasonable.
controls, and reviewing the work of component auditors and Exposures arising from oil marketing posing particular risk due to
site visits the effects of the steep fall in the price of oil earlier in the year were
2. FRC Corporate Reporting Review considered in particular.
The Committee considered a letter from the FRC relating to 7. Other material issues
the Group’s 2019 annual report and accounts. The Committee These included going concern and long-term viability
reviewed and agreed the comprehensive response proposed assessments. The Committee was satisfied with the going
by management, with input from the external auditor, to the concern and longer-term viability conclusions reached as set out
questions raised by the FRC. on page 72.
Following further correspondence the questions were answered,
see Corporate Reporting Review on page 94. INTERNAL AND EXTERNAL AUDIT
The Committee monitored the internal audit function as
3. Covid-19 described under Internal Audit on page 71.
Impact assessment in accordance with the FRC guidance. The The Committee assesses the quality and effectiveness of the
Committee considered at each of its meetings from May (having external audit process on an annual basis in conjunction with the
first discussed at Board level in April) the risks to management senior management team. Key areas of focus include
accounting and internal controls processes becoming challenged consideration of the quality and robustness of the audit,
due to the effects of Covid, including relocation of staff and identification of and response to areas of risk and the experience
inaccessibility of some business locations. The Committee and expertise of the audit team, including the lead audit partner.
reviewed the Group’s financial reporting framework and controls
structure and considered the potential impact and mitigating The application of the FRC’s Revised Ethical Standard 2019, from
controls that could be applied in respect of its critical controls. 1 January 2021, has introduced significantly extended restrictions
Certain controls around significant risk areas were considered in regarding the use of the Company’s external auditor for non-audit
respect of reporting at Group level, controls concerning the services, to preserve the auditor’s independence. This has largely
marketing and industrial businesses and our critical IT infrastructure. overtaken the Group’s non-audit services policy, although this is
still maintained.
4. Impairments For 2020, fees paid to the external auditor were $28 million,
The Committee considered whether the carrying value of including total non-audit fees of $4 million; further details are
goodwill, industrial assets, physical trade positions and material contained in note 29 to the financial statements.
loans and advances may be impaired as a result of commodity The Committee has commenced a tender process for the
price volatility and some asset specific factors including the appointment of the Company’s external auditor. This process will
impact of climate change. The Committee reviewed be completed this year and the appointment will be with effect
management’s reports, outlining the basis for the key from the audit of the financial statements for 2022.
assumptions used in calculating the recoverable value for the
Group’s assets. Future performance assumptions used are derived
from the Board-approved business plan. As part of the process for Kalidas Madhavpeddi
approval of this plan, the Committee considered the feasibility of Chair of the Audit Committee
strategic plans underpinning future performance expectations, 10 March 2021
and whether they remain achievable. Considerable focus was
applied to management’s commodity price and exchange rate
assumptions and their sensitivities within the models. The Group’s
coal assets in Australia, Colombia and South Africa, copper assets
in central Africa, the Volcan business in Peru, the Koniambo nickel
asset in New Caledonia and the oil assets in Africa have been
subject to particular scrutiny. In relation to coal, there continues to
be particular focus around the price outlook and climate change
related risks.
5. Taxation
Due to its global reach, including operating in many higher-risk
jurisdictions, the Group is subject to enhanced complexity and
uncertainty in accounting for income taxes, particularly the
evaluation of tax exposures and recoverability of deferred tax
assets. The Committee has engaged with management to
understand the potential tax exposures globally and the key
estimates taken in determining the positions recorded,
including the status of communications with local tax
authorities and the carrying values of deferred tax assets.
The African copper assets and tax risk exposures in the UK
have been particular areas of focus.

NOMINATION
COMMITTEE REPORT
Patrice Merrin
Chair
During the year, the Committee’s composition was altered from

initially Anthony Hayward (Chair), John Mack, Leonhard Fischer
Other members
and Gill Marcus to its current composition.
John Mack
The Committee met five times during the year. Kalidas Madhavpeddi
John Burton is the Secretary of this Committee.
ROLES AND RESPONSIBILITIES

The main responsibilities of the Nomination Committee are to MAIN ACTIVITIES
assist the Board with succession planning and with the selection The Committee focused on three main tasks during this year.
process for the appointment of new Directors, both Executive and The most important has been senior management succession.
Non-Executive, including the Chairman, and senior management. The decision making for this progress was completed by year end.
This involves: During the first half of 2021, Mr Glasenberg will retire and all of the
heads of the main departments will have been replaced from
• Evaluating the balance and skills, knowledge and experience of
those in place at the Company’s IPO in 2011.
the Board and identifying the capabilities required for a
particular appointment Secondly, prior to the notice of 2020 AGM being compiled, the
Committee considered the performance of each Director. It
• Overseeing the search process
concluded that each Director is effective in their role and
• Evaluating the need for Board refreshment and succession
continues to demonstrate the commitment required to remain
planning generally
on the Board. Accordingly, it recommended to the Board that
• Overseeing planning for CEO and CFO succession re-election resolutions be put for each Director at the 2020 AGM.
• Monitoring the CEO’s planning for senior management
Thirdly, the Committee considered the composition of the Board.
succession to seek to ensure that the Company has a suitable
The Committee continued its work on board refreshment. This
pipeline of candidates
has led to the appointments of Kalidas Madhavpeddi and Cynthia
• Considering diversity in appointments Carroll, both of whom bring extensive mining experience and
further diversity to the Board table.
The Committee acknowledged the recommendations of the
Hampton Alexander Review on gender and the Parker Review on
ethnic diversity. It is part of the Committee’s policy when making
new Board appointments to consider the importance of diversity
on the Board, including gender and ethnicity. This is considered in
conjunction with experience and qualifications. Following the
appointment of Cynthia Carroll, the Board satisfies the diversity
target set by the Hampton-Alexander review. Additionally, the
Board meets the ethnic diversity target of the Parker Review.
Patrice Merrin
Chair of the Nomination Committee
10 March 2021

DIRECTORS’
REMUNERATION
REPORT
For the year ended 31 December 2020
John Mack
Chair
Other members
Kalidas Madhavpeddi
Martin Gilbert
INTRODUCTION
On behalf of the Remuneration Committee, I am pleased to PART A-1
present our Directors’ remuneration report for the year ended
31 December 2020. CEO SUCCESSION PACKAGE AND RESULTING
PROPOSED POLICY CHANGES
In February 2020, Leonhard Fischer stepped down as a member
of the Committee and was replaced by Kalidas Madhavpeddi. The current remuneration policy provides for a salary cap of $2m
Martin Gilbert and I served on this Committee throughout plus RPI and the ability to operate an annual bonus and long-
the year. term incentive plan (LTIP) each subject to a maximum of 200%
of salary. It also provides for the LTIP to operate with pre-vest
At the 2020 AGM, our shareholders approved the Directors’ performance conditions measured over 3 years and a further
Remuneration Policy and the Directors’ Remuneration Report 2-year holding period. These current policy positions for variable
with over 96% of votes cast in favour of both resolutions. pay are not in line with the practices of our peers or the FTSE 30
In December 2020, it was announced that Ivan Glasenberg will and require changes to facilitate the transition to new leadership.
retire in 2021 and that Gary Nagle will succeed him as CEO. As
part of the transition preparation, the Board and the Committee Consultation
have during the last year been considering the most appropriate During 2020 and 2021, the Committee conducted extensive
approach to CEO pay. The purpose of the proposed new approach external benchmarking based on a UK-listed peer group. This
is to ensure that Mr Nagle receives remuneration which is both comprised of Anglo American, BHP, BP, Rio Tinto and Shell.
competitive and aligned with our shareholders’ interests. As The mining companies were chosen as the best comparators
shareholders will be aware, Mr Glasenberg, given his large to our industrial business while the oil companies’ combined
shareholding, waived any salary increase and participation in industrial and marketing business model is closely aligned to
any form of variable pay programme and, therefore, his overall the Group’s activities.
pay was not typical or competitive. New arrangements needed Policy proposals and a proposed remuneration package were
to be newly created rather than built on prior arrangements. developed and consulted upon with a significant number of
This report is presented to reflect the reporting requirements on shareholders and proxy advisors. There were two main rounds of
remuneration matters for companies with a UK governance consultation over a period of 13 months which enabled valuable
profile, particularly the UK’s Large and Medium-sized Companies feedback and suggestions to be incorporated into the final
and Groups (Accounts and Reports) (Amendment) Regulations proposed remuneration package and policy. The majority
2013, unless stated otherwise. The report also describes how the of respondents were comfortable with the proposed changes.
Board has complied with the provisions set out in the UK We received constructive feedback in relation to quantum, the
Corporate Governance Code relating to remuneration matters. restricted stock plan (RSP) underpin and the importance of clearly
Our auditors have reported on certain parts of the Directors’ identifying the proposed changes to the policy and their rationale.
remuneration report and stated whether, in their opinion, those In the spirit of this consultation and ensuring full disclosure,
parts of the report have been properly prepared. Those sections of the detailed remuneration package and the underlying logic,
the report which have been subject to audit are clearly indicated. assumptions and chosen comparators are detailed in the
following sections.
John Mack
Chair of Remuneration Committee
10 March 2021

Fixed Remuneration Given the complexity of the Group structure and its clear exposure
To set a competitive salary for Mr Nagle, the Committee to commodity price movements, the underpin deliberately does
has considered both the current salary level for the CEO and not apply a formula driven approach to determining vesting levels.
comparison with the peer group and FTSE 30. Instead, broad discretion has been reserved to consider the
position in the round and to reduce vesting levels if the overall
Mr Glasenberg has not received an increase since 2011, despite company financial or ESG performance is not at an adequate
clear salary growth in the market during this period. Extrapolating level. Instead, the Remuneration Committee will make use of
his salary with the ten-year average RPI for the UK of 2.8%, results all relevant data points for its review, including the Company’s
in an increased salary of c. $1.9m. The typical base salary for the Ethics and Compliance programme and climate action transition
CEOs within our peer group ranges between c. $1.6-1.9m, plan to assess the progress across the Group concerning material
depending on currency exchange rates. ESG matters. In reaching any decision, it will balance both the
Glencore’s annual pension provision for the CEO is fully aligned design principle that the default for restricted stock is to accept
to the wider Swiss workforce, which at present amounts to a lower awards levels for greater certainty of vesting and, therefore,
maximum of c. $65,000. This provision is significantly below the there should be a default to full vesting while ensuring that the
peer range of $150-450,000. The resulting fixed remuneration Remuneration Committee considers the overall outcome and
of base salary, benefits and pension provision in the peer group avoids payments for failure.
ranges between c. $1.9-2.3m. The Committee has set the base
salary at $1.8m, well within the current policy cap of $2m. Annual Bonus
The resulting total fixed remuneration of c. $1.9m inclusive of To further build on the principle of share ownership and
pension and all benefits places the proposal at the lower end shareholder alignment, the Committee is proposing that 50% of
of the peer group. any bonus outcome is deferred into shares. These deferred shares
shall vest on the third anniversary of grant and are generally
Long Term Incentive (LTI) subject to continuing employment. To ensure a fair balance
A particular area of concern for the Remuneration Committee between any bonus pay-outs and alignment to shareholder
in designing the proposed remuneration policy was the interests and considering that the RSP component is not
considerable volatility in variable pay in commodity related accessible until two years post-employment, the Committee is
businesses. The Committee focused on constructing a package proposing to increase the maximum opportunity to 250% of salary
which rewarded long-term executive decision making rather from the current policy maximum of 200%.
than short-term commodity price movements. It concluded that The Remuneration Committee proposes an initial scorecard for
a RSP, subject to the appropriate level of discount to a traditional 2021 comprising 55% financial measures, 30% HSEC and 15%
LTIP, would reward consistent shareholder value creation, individual targets which provides an appropriate mix of financial
executive planning and action. The Committee also supports and non-financial measures. The scorecard will be kept under
the principle of long-term share ownership which is promoted review in subsequent years and, while this basic framework is
by the UK Corporate Governance Code and believes that there likely to continue, the precise metrics may evolve in line with the
is no better alignment between the interests of executives and Board’s priorities. The policy allows for flexibility to set measures,
shareholders than through long-term shareholding. Therefore, weightings and targets each year which recognise market
to ultimately align the CEO’s interests with those of our developments while placing appropriate emphasis on our
shareholders, no shares under the proposed RSP will be long-term commitments.
disposable until at least two years post-employment, except
as necessary to meet tax obligations. Total Remuneration
Given that the Company has never previously operated an The Committee believes that the initial proposed maximum total
executive LTIP, the Remuneration Committee designed the remuneration of $10.4m is not excessive, provides market
proposed plan after comparison with the peer group and FTSE30. competitiveness, alignment to shareholders’ interests and an
These benchmarks suggest an LTIP grant level of 400-500% of appropriate discount to peer LTIP levels. The Committee
salary suggesting a discounted award of 200-250% following the highlights that approximately 60% of the total reward opportunity
best practice conversion for restricted stock awards at 50% of the is delivered in shares and 40% is subject to a holding requirement
LTIP face value. until two years post-employment and is, therefore, directly aligned
Considering the total pay position and the holding requirement with the long-term interests of shareholders. For the purposes of
of two years post-employment, the Committee feels that a clarity, the maximum total annual remuneration that the CEO will
proposed award level of 225% of salary is an appropriate award actually receive during his employment is c. $6.4m compared
level and proportionate to the role both in terms of quantum to the peer maximum of $11-18m, since 40% is held back until
and relative to benchmarks. two years post-employment. This ignores any share price changes,
distributions or share awards.
The vesting of each annual grant will be subject to a holistic
review of performance following the third anniversary of grant. The holding restriction until two years’ post-employment under
In reaching its decision, the Committee will look at both financial the RSP is separate from the general shareholding guideline in
and non-financial performance noting that there may be the amount of 500% of salary for the CEO.
short-term trade-offs between different factors. In particular, it will
consider reducing the level of vesting if any of the following occur:
• Failure to pay the minimum distribution required under the

Company’s stated distribution policy;
• The overall performance and outcomes, both on absolute and
relative basis, is considered by the Committee unsatisfactory to
permit full vesting;
• ESG performance (including climate) is considered
unsatisfactory to permit full vesting.

DIRECTORS’ REMUNERATION REPORT
For the year ended 31 December 2020 continued
FY2021 CEO Package

The below table summarises the full year proposed package. For 2021 the bonus and RSP awards for Mr Nagle will be time pro-rated
to reflect his period as CEO following his appointment.
Fixed Remuneration Annual Bonus Long Term Incentive
• $1.8m Base Salary • 125% target, 250% maximum bonus • 225% per year
• Nominal Benefits/Pension • 55% Financial, initially comprising: • Comprehensive underpin focused on
• In line with market and competition, ensures ‒ 30% Funds From Operations; a holistic review of the overall business
stability and balanced with more ‒ 15% Net debt; and ESG performance.
conservative variable potential ‒ 10% Capex; • Test of underpin and cliff vesting on third
• 30% HSEC comprising of: anniversary. Requirement to hold all vested
‒ 15% Safety; restricted stock until the later of 5-years
‒ 15% Progress towards 2035 CO2 targets; and from grant and 2 years post-employment.
• 15% Individual targets.
• 50% deferred into shares vesting
on the third anniversary, subject
to continuing employment.
Summary of proposed policy changes Conclusion

The following changes to the variable elements of the While the Company renewed its policy at the 2020 AGM, based on
remuneration policy are proposed (neither of which the findings of the review described above, it is now necessary to
have been utilised by the current CEO): seek approval for a revised policy in light of succession as we move
to a more appropriate and competitive remuneration structure.
• Annual bonus maximum increased from 200% to 250%
with 50% of any bonus outcome deferred for three years We believe that the proposal directly aligns the executive director’s
into shares. Minor clarifications to the operation of deferral interests with those of our shareholders through the most
and distribution accrual. long-term plan operated by a major UK listed company. We are
confident that shareholders will recognise this as a continuation
• Introduction of RSP. Under the new plan, the CEO will receive
of our ESG journey.
an annual grant of shares worth 225% of salary. The vesting is
subject to an underpin, combined with a holding requirement The Committee continues to seek to ensure that the directors’
until two years post-employment. remuneration policy and its implementation are attractive to
shareholders in reflecting sensible practice and good governance.
A comparison of each current policy element and the proposed
We welcome an open dialogue with shareholders and will
changes can be found on the following pages.
continue to consult with major shareholders before implementing
any future significant changes to the remuneration policy.
We would like to thank all those who took part in the consultation
for their openness and constructive challenge.

Part A-2 General Policy

DIRECTORS’ REMUNERATION POLICY ELEMENTS OF THE PACKAGE
The Directors’ Remuneration Policy as set out in this section of the Remuneration Policy for the Directors is summarised in
report will take effect for all payments made to Directors from the the table below:
date of the 2021 AGM. The Policy approved by shareholders at the
2020 AGM will apply until approval is obtained for the new Policy.
Any changes to the Policy are highlighted where relevant. General Policy for Executive Directors
UK legislation and related investor guidance encourages (This section does not technically form part of the Directors’
companies to disclose a cap within which each element of Remuneration Policy and is for information only)
remuneration policy will operate. Although not subject to this
legislation, the Committee has set an annual cap for each element
of remuneration under the maximum opportunity column which The philosophy of the Remuneration Committee is to
will apply until a revised policy is approved by shareholders. set the Company’s remuneration policies and practices
to promote the long‑term success of the Company and
The Policy for the Executive Directors currently only applies to Mr
support the implementation of the Group’s strategy,
Glasenberg as he is the only Executive Director. Mr Nagle will be
while aligning the interests of the Executive Directors
appointed to the Board and replace Mr Glasenberg from a date to
and executives with those of shareholders generally.
be announced in 2021. Mr Glasenberg, given his status as a major
This policy has consistently underpinned our approach
shareholder, elected not to participate in any form of variable pay
to executive remuneration.
and, as acknowledged in the 2020 policy, this requires the policy to
be updated to reflect the future position applying to his successor. The Committee is satisfied that the revised remuneration
policy is in the best interests of shareholders and does not
raise any environmental, social or governance issues and
does not promote excessive risk taking.
UK CORPORATE GOVERNANCE CODE CONSIDERATIONS

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

1. Components of Executive Director Remuneration

Base salary Benefits
Provides market competitive fixed remuneration that rewards To provide appropriate supporting non-monetary benefits
relevant skills, responsibilities and contribution
Policy and operation Policy and operation

Salaries are positioned within a market competitive range for Provides appropriate insurance coverage benefits.
companies of a similar size and complexity. Values are shown in the single figure table on page 111 but may
The Committee does not slavishly follow data but uses it as a fluctuate without the Committee taking action.
reference point in considering, in its judgement, the appropriate The Company may periodically change the benefits available to staff
level having regard to other relevant factors, including corporate for the office at which an Executive Director works in which case the
and individual performance and any changes in an individual’s Director would normally be eligible to receive the amended benefits
role and responsibilities. Base salary is paid monthly in cash. on similar terms to all relevant staff. In the case of a Swiss based
Maximum opportunity and performance measures executive, this would be expected to mean employees generally
Base salaries are usually reviewed annually, however, this next in the Baar office.
review will take place in December 2022. Maximum opportunity and performance measures
A base salary cap of $2 million p.a. has been set. Benefits to comprise only those generally available to staff at
This cap will increase in line with UK RPI from 24 May 2020 the Company’s head office. These currently comprise salary
being the date at which the cap was first approved. loss (long-term sickness) and accident / travel insurance.
A monetary limit of $100,000 p.a. for these benefits applies
Key changes to last approved policy
($20,000 in the case of Mr Glasenberg).
None
None
Pension Annual Bonus
Provides basic retirement benefits which reflects local Supports delivery of short-term operational, financial and
market practice strategic goals

Participation in the defined contribution scheme for all Swiss head Annual Bonus plan levels and the appropriateness of measures
office-based employees. are reviewed annually to ensure they continue to support the
Group’s strategy.
Maximum opportunity and performance measures
An annual cap on the cost of provision of retirement benefits of 50% of any Annual Bonus plan outcome to be deferred into shares
$150,000 per Executive Director has been set. for a period of up to three years although the Committee reserves
discretion to alter the current practice of deferral (whether by
Any Executive Director’s benefit will be aligned with the average
altering the portion deferred, the period of deferral or whether
percentage contribution or entitlement available to staff in the
amounts are deferred into cash or shares). The current intent is that
relevant market.
such shares vest on the third anniversary of grant contingent on
Key changes to last approved policy continuous employment.
None Cash element to be paid in one tranche following the publication
of the year-end results.
Dividends will accrue over the period from grant to the relevant
vesting date and roll up into further shares which will be released
on such date.
Malus and clawback provisions apply to any Annual Bonus
plan outcome.
The Committee has set a maximum annual bonus level of 250%
of base salary p.a.
The performance measures applied may be financial, non-financial
and corporate, divisional or individual and in such proportions as the
Committee considers appropriate.
Additionally, the Committee will consider the outcomes against pre-set
targets following their calculation and may moderate these outcomes
to take account of a range of factors including the Committee’s view
of overall Company performance in the year. The Committee
specifically reserves the ability to reduce payments if not satisfied
that any formulaic outcome is appropriate in the circumstances.
Cap increased from 200% to 250% and minor clarifications to the
operation of deferral and distribution accrual.

1. Components of Executive Director Remuneration continued

Long Term Incentives Personal Shareholdings
Incentivises the creation of shareholder value over the

longer term

Awards will generally be granted on an annual basis contingent The Committee has set a formal shareholding requirement for
on employment to the third anniversary of grant and satisfaction Executive Directors of 500% of salary.
of an underpin at that time. As the award is of restricted shares, the Usually to be achieved within 5 years of Board appointment.
default will be for awards to vest, unless the Committee considers
this inappropriate in the circumstances. An Executive Director will normally be required to retain the
lower of the actual holding on stepping down from the Board
Shares will only be released (other than to meet tax obligations) on and such shares as then represents the policy level of 500% of
the later of five years from grant and two years post-employment. salary for 2 years after stepping down (although the Board may
Distributions will accrue over the period from grant to the third relax this requirement in appropriate cases) with such policy
anniversary of grant and roll up into further shares, which will be enforceable through a requirement to lodge such shares at the
released on such anniversary. From that date, distributions will be Company’s request.
paid directly on any vested shares.
Malus and clawback clauses apply. None
The Company will honour the vesting of all awards granted under
previous policies in accordance with the terms of such awards.
Overall annual Executive Directors’ limit of 225% of salary for LTI grants.
The vesting of awards is subject to an underpin permitting the
Committee to reduce or eliminate the level of vesting if it considers
full vesting inappropriate in all the circumstances.
The Committee will holistically review the overall business and ESG
performance (including financial and non-financial elements, such
as distribution payments, delivery against climate change objectives,
governance, culture, as well as health and safety performance).
Introduction of Restricted Share Plan.
Service Contracts
Policy and operation

It is the Company’s policy to provide for 12 months’ notice for
termination of employment for Executive Directors, to be given by
either party.
Under normal circumstances, the Company may terminate the
employment of an Executive Director by making a payment in lieu
of notice equivalent to basic salary only for the notice period at the
rate current at the date of termination. In appropriate cases, the
Executive Director can be dismissed without compensation.
None
Notes to policy table and other key considerations

1. Differences between the policy on remuneration for Directors from the policy on remuneration of other employees: the only current Executive Director has waived any
entitlement to participate in the variable pay arrangements. Arrangements also differ from its pay policies for Group employees as necessary to reflect the appropriate market
rate position for the relevant roles. In particular, Mr Glasenberg’s pension benefits are in accordance with those provided to other Swiss-based employees and do not include
any enhancement.
2. For 2020, all remuneration and fees were paid in US Dollars except for pension contributions and the provision of benefits which were provided in Swiss Francs.

MALUS & CLAWBACK When Mr Nagle joins the Board, it is envisaged that his potential
Awards subject to the applicable plan rules governing the annual remuneration will comprise:
bonus and RSP are subject to malus and clawback provisions that $m
allow the Committee to reduce or clawback awards and may be $14

applied in certain circumstances. These provisions apply
$12 $2.025
irrespective whether an award is made in cash or equity.
$10 $4.050 $4.050
The Committee may, in its discretion, decide to delay vesting and
therefore extend the period during which malus and clawback $8 $4.050
may be applied if facts come to light within the period warranting
$6 $4.500 $4.500
an investigation.
$4 $2.250
DISCRETION AND VESTING SUBJECT
TO THE UNDERPIN $2
$1.850 $1.850 $1.850 $1.850
In addition to the specific discretions set out in the policy table $0

Minimum On-target Maximum Maximum Plus
above, the Committee may exercise various discretions related
to the operation of the policy. In particular, these include, but are Fixed Remuneration
not limited to, the following:
Annual Bonus
• the participants of the respective plans; LTI
• the timing of award grants, vesting and/or payment; LTI Plus
• the size of an award and/or payment (subject to the limits
set out in the policy table); This has been calculated using the following assumptions, in
• the determination of vesting; accordance with UK reporting regulations:
• dealing with a change of control or corporate restructuring; • Minimum: Mr Nagle’s starting salary of $1.8m and
• the determination of a good/bad leaver for incentive plan assumed benefits of $50k (one-time relocation expenses
purposes and the treatment of pro-rating and holding periods; have been excluded)
• adjustments required in certain circumstances (e.g. rights • On-target pay: as Minimum plus bonus at 50% of maximum
issues, corporate reorganisation and/or change to capital plus the LTI grant
structure); and • Maximum pay: as On-target pay except bonus payable at max
• determining the appropriate performance conditions, • Maximum plus 50%: as Maximum pay except the share price
underpins, weightings and targets for the annual bonus on the LTI is assumed to increase by 50%
scheme and LTI.
• Each element ignores the impact of distribution roll-up
The holistic, qualitative judgement, which is applied as an
underpin test before final vesting of restricted stock is confirmed, MANAGING POTENTIAL CONFLICTS OF INTEREST
is an important aspect to ensure that vesting is not simply driven In order to avoid any conflicts of interest, remuneration is
by a formula or the passage of time that may give unexpected or managed through well-defined processes ensuring that no
unintended remuneration outcomes. individual is involved in the decision-making process related
The exercise of any discretion will be fully disclosed in the to their own remuneration. In particular, the remuneration of
applicable statement of implementation of the policy. an Executive Director is set and approved by the Committee;
no Executive Director is involved in the determination of his own
POTENTIAL REWARDS UNDER VARIOUS SCENARIOS remuneration arrangements or attends the meetings where
Under the current policy, consistent with other large FTSE this is discussed.
companies, the total available variable pay (i.e. the maximum The Committee also receives support from external advisers
amount payable in respect of bonus and long-term incentives) and evaluates the support provided by those advisers annually to
available to Mr Glasenberg would be approximately $5,790,000 ensure that advice is independent, appropriate and cost-effective.
(being four times base salary). As Mr Glasenberg has waived Committee members bring their own judgment to consideration
entitlement to all variable elements for 2021, including both of all matters.
bonus and long-term incentives, his base salary and all benefits
are set at less than 25% of the aggregate remuneration which
would potentially have been available to him, had he not waived
participation in these aspects. These waivers are considered
appropriate as the level of his personal shareholding is sufficient
to provide a keen alignment of interest between him and of
shareholders more generally without the need to add additional
aspects to his package (and cost to other shareholders). His fixed
remuneration is set at a moderately below market level so the
waivers do not reflect any element of an excessive bias to fixed pay
in the traditional sense.

RECRUITMENT REMUNERATION POLICY

The Company’s Executive Director Recruitment Remuneration Policy aims to give the Committee sufficient flexibility to secure the
appointment and promotion of high-calibre executives to strengthen the management team and secure the skill sets to deliver our
strategic goals.
• The starting point for the Committee will be to look to the • Where it is necessary to make a recruitment related pay
General Policy for Executive Directors as set out above and award to an external candidate the Company will not pay
structure a package in accordance with that Policy. However more than is in the view of the Committee necessary and will
(consistent with the UK regulations) for a newly appointed in all cases seek in the first instance to deliver any such awards
Executive Director the Committee is not constrained by the under the terms of the existing incentive pay structure. It may
caps on fixed pay within the Policy on a recruitment or at however be necessary in some cases to make such awards
any subsequent annual review within the life of this Policy on terms that are more bespoke than the existing annual
as approved by shareholders. Nonetheless, it envisages and equity-based pay structures in the Group in order to
applying the caps in practice. The Committee will not secure a candidate.
pay more than it considers to be necessary to secure the • All such awards for external appointments whether under
recruitment having regards to appropriate market rates the Annual Bonus plan, Restricted Share Plan or otherwise
and evolving best practice. to compensate for awards forfeited on leaving a previous
• For an internal appointment, any variable pay element employer will take account of the nature, time-horizons and
awarded in respect of the prior role may either continue on its performance requirements on those awards. In particular, the
original terms or be adjusted to reflect the new appointment Committee’s starting point will be to ensure that any awards
as appropriate. being forfeited which remain subject to outstanding
• For external and internal appointments, the Committee may performance requirements (other than where these are
agree that the Company will meet certain relocation expenses substantially complete) are bought-out with replacement
as they consider appropriate and/or to make a contribution requirements and any awards with service requirements are
towards legal fees in connection with agreeing employment bought out with similar terms. However exceptionally the
terms. Such costs will be outside the formal caps and will be Committee may relax those obligations where it considers it to
limited to two years. be in the interests of shareholders and those factors are in the
• The Committee reserves the right to make awards of incentive view of the Committee equally reflected in some other way for
pay that are necessary to secure a candidate to compensate example through a significant discount to the face value of
for the forfeiture of incentive awards in a previous employer. the awards forfeited. It will only include guaranteed sums
Details of any such awards will be appropriately disclosed. where the Committee considers that it is necessary to secure
the recruitment.
• For the avoidance of doubt where recruitment related awards
are intended to replace existing awards held by a candidate in
an existing employer the maximum amounts for incentive
pay as stated in the general policies will not apply to such
awards. The Committee has not placed a maximum limit on
any such awards which it may be necessary to make as it is
not considered to be in shareholders’ interests to set any
expectations for prospective candidates regarding such
awards. Any recruitment-related awards which do not replace
awards with a previous employer will be subject to the limits
on incentive awards as detailed in the general policy.
The elements of any package for a new recruit and the approach taken by the Committee in relation to setting each element of the
package will be consistent with the Executive Directors’ Remuneration Policy described in this report, as modified by the above
statement of principles where appropriate.
A new Non-Executive Director would be recruited on the terms explained below in respect of the main Policy for such Directors.

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 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 notice periods on a termination and any
treatment which the Committee may choose to apply under the discretions available to it under the terms of the annual bonus and
LTI arrangements. The potential treatments on termination under these plans are summarised below.
Incentives Good leaver Bad leaver
If a leaver is deemed to be a “good leaver”; i.e. leaving If a leaver is deemed to be a “bad leaver”; typically,
through, serious ill health or death or otherwise at the voluntary resignation or leaving for disciplinary reasons
discretion of the Committee
Annual Bonus Pro-rated bonus, typically with the normal proportion No awards made
subject to deferral
Deferred element Typically retained for the balance of the deferral period May be retained or forfeited at Committee discretion
of bonus (although the Committee may exceptionally approve
early release)
LTI Will receive a pro-rated award (if applicable, subject All awards will normally lapse.
to the application of the underpin at the normal
measurement date.)
Committee discretion to disapply pro-rating
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 appropriate circumstances.
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 legal advice, sanction the payment of additional sums in the settlement
of potential legal claims and/ or the provision of outplacement and similar services.
Engagement with shareholders

2. Chairman and Non-Executive As explained, on page 100 of this report, the Company engaged
Director Remuneration extensively with shareholders as part of the development of this
policy. The Committee will continue to monitor the views of
Fees shareholders as published in guidelines and engage directly with
them as appropriate.
Reflects time commitment, experience, global nature and size
of the Company Engagement with colleagues
As a global resources company with employees around the world,
Policy and operation many of whom do not have access to the internet, it is not feasible
The objective in setting the fees paid to the Chairman and the to directly engage with all colleagues on executive remuneration.
other Non-Executive Directors is to be competitive with other The Committee is advised of pay and conditions around the
listed companies of equivalent size and complexity. Fee levels are Group and considers such information when considering
periodically reviewed by the Board (for Non-Executives) and the executive pay.
Committee (for the Chairman). In both cases, the Company does
not adopt a quantitative approach to pay positioning and exercises
judgement as to what it considers to be reasonable in all the
circumstances as regards quantum.
Non-Executive Directors and the Senior Independent Director
receive a base fee.
Additional fees are paid for chairing or membership of
a Board committee.
Chairman receives a single inclusive fee.
Reasonable business-related expenses are reimbursed (including
any tax thereon).
Non-Executive Directors are not eligible for any other remuneration
or benefits of any nature.
Reviewed every year with the next review due to take place in
December 2021.
Fees are paid monthly in cash.
Aggregate fees for all Non-Executive Directors (including the
Chairman) are subject to the cap set in the Articles of Association.
This is currently set at $5,000,000.
None

DIRECTORS’ SERVICE CONTRACTS

Executive Director’s Contract
Part B – Implementation Report
The table below summarises the key features of the service IMPLEMENTATION REPORT – UNAUDITED
contract for Mr Glasenberg, the only person who served as an INFORMATION
Executive Director during 2020. Remuneration Committee
A copy of the service contract of the Executive Director is available
for inspection at Company’s registered office as noted on Membership and experience of the Remuneration
page 243 or as otherwise indicated in the Notice of 2021 AGM. Committee
Provision Service contract terms
The members of the Committee provide a useful balance of skills,
experience and perspectives to provide the critical analysis
Notice period Twelve months’ notice by either party required in carrying out the Committee’s function. Each of Messrs
Contract date 28 April 2011 (as amended on 30 October 2013) John Mack, Martin Gilbert, and Kalidas Madhavpeddi has had a
Expiry date Rolling service contract long career in the management of large organisations and
therefore provides considerable experience of remuneration
Termination No special arrangements or entitlements on
payment termination. Any compensation would be limited to
analysis and implementation. All members of the Remuneration
base salary only for any unexpired notice period (plus Committee are considered to be independent. Further details
any accrued leave) concerning independence of the Non-Executive Directors are
Change On a change of control of the Company, no contained on pages 90 and 91.
in control provision for any enhanced payments, nor for
any liquidated damages Role of the Remuneration Committee
The terms of reference of the Committee set out its role. They are
EXTERNAL APPOINTMENTS available on the Company’s website at:
None currently. The appropriateness of any future appointment glencore.com/who-we-are/governance
is considered as part of the annual review of Directors’ interests/ Its principal responsibilities are, on behalf of the Board, to:
potential conflicts.
• Regularly review the appropriateness and relevance of the
NON-EXECUTIVE DIRECTORS’ LETTERS Remuneration Policy
OF APPOINTMENT AND RE-ELECTION • Determine and agree with the Board the framework for the
All Non-Executive Directors have letters of appointment with remuneration of the Company’s Chairman, the Chief Executive
the Company for an initial period of three years from their date and the Executive Directors
of appointment, subject to re-election at each AGM. The Company • Establish the remuneration package for the Executive Directors
may terminate each appointment by immediate notice and there including the scope of pension benefits
are no special arrangements or entitlements on termination • Determine the remuneration package for the Chairman,
except that the Chairman is entitled to three months’ notice. in consultation with the Chief Executive
Copies of the letter of appointment for Non-Executive Directors
• Determine the policy for senior management remuneration
are available for inspection at Company’s registered office
• Oversee schemes of performance related remuneration
address as noted on page 243.
(including share incentive plans), and determine awards for
The annual fees are paid in accordance with a Non‑Executive the Executive Directors (as appropriate)
Director’s role and responsibilities. The Chairman’s fee is inclusive
• Ensure that the contractual terms on termination for the
of all his committee responsibilities. The fees payable for 2021,
Executive Directors are fair and not excessive
which are unchanged from 2020, are as follows:
The Committee considers corporate performance on HSEC and
US$‘000
governance issues when setting remuneration for the Executive
Directors Director. Additionally, the Committee seeks to ensure that the
Chairman 1,150 incentive structure for the Group’s senior management does not
raise HSEC or governance risks by inadvertently promoting and/or
Senior Independent Director 200
rewarding behaviours that are not aligned with the Group policies,
Non-Executive Director 135
values and culture.
Committee Fees:
ECC
Member 50
Remuneration
Chair 45
Member 25
Audit
Chair 60
Member 35
Nomination
Chair 40
Member 20
HSEC
Chair 125
Member 40
Investigations
Member 40

Remuneration Committee meetings The UK reporting regulations also require that a TSR performance
The Committee met two times during the year and considered, graph is supported by a table summarising aspects of CEO
amongst other matters, the Remuneration Policy and the remuneration, as shown below for the same period as the TSR
packages applicable to the Chairman, the CEO and senior performance graph:
management, and the content and approval of the Performance
remuneration report.
The Chairman, CEO and CFO are usually invited to attend some 40
24.9
or all of the proceedings of Remuneration Committee meetings; 20
however, they do not participate in any decisions concerning their
0
own remuneration.
-20
Advisers to the Remuneration Committee
-40 (42.3)
The Committee appointed and received independent
remuneration advice during the year from its external adviser, -60
FIT Remuneration Consultants LLP (FIT). FIT is a member of the
-80
Remuneration Consultants Group (the UK professional body for
these consultants) and adheres to its code of conduct. The -100
Committee was satisfied that the advice provided by FIT was 19 May 30 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Dec 29 Dec 31 Dec 31 Dec 31 Dec
2011 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
objective and independent.
Glencore FTSE 350 Mining
FIT’s fees for this advice in respect of 2020 were $59,554
(2019: $58,491).
The Committee also receives advice from the Company Secretary.
CEO single figure remuneration since 2011
Relative importance of remuneration spend Annual
The table below illustrates the change in total remuneration, variable Long-term
element incentive
distributions paid and net profit from 2019 to 2020. Single figure award rates vesting
of total against rates against
2020 2019 remuneration1 maximum maximum
US$m US$m (US$’000) opportunity2 opportunity2
Distributions and buy-backs attributable – 5,028 2020 Ivan Glasenberg 1,508 – –
to equity holders
2019 Ivan Glasenberg 1,503 – –
Net income/(loss) attributable (1,903) (404)
to equity holders 2018 Ivan Glasenberg 1,503 – –
Total remuneration 5,403 5,231 2017 Ivan Glasenberg 1,513 _ _

2016 Ivan Glasenberg 1,509 _ _
The figures presented have been calculated on the following 2015 Ivan Glasenberg 1,510 _ _
bases: 2014 Ivan Glasenberg 1,513 – –
• Distributions and buy-backs – distributions paid and shares 2013 Ivan Glasenberg 1,509 – –
bought back during the year 2012 Ivan Glasenberg 1,533 – –
• Net income/(loss) attributable to equity holders – our 2011 Ivan Glasenberg 1,483 – –
reported net loss in respect of the financial year.
1 The value of benefits and pension provision in the single figure vary as a result of the
• Total remuneration – represents total personnel costs as application of exchange rates although in the relevant local currency these parts of
disclosed in note 23 to the financial statements which includes Mr Glasenberg’s remuneration have not altered since May 2011. In this table the
figures are reported in US dollars, the currency in which Mr Glasenberg received his
salaries, wages, social security, other personnel costs and
salary in 2020. The salary was payable in pounds sterling prior to 2014. Therefore
share-based payments those figures have been translated into US dollars at the exchange rates used for the
preparation of the financial statements in those years. Mr Glasenberg’s pension and
Performance graph and table other benefits are charged to the Group in Swiss francs and these amounts are
translated into US dollars on the same basis.
This graph shows the value to 31 December 2020, on a total 2 The CEO has requested not to be considered for these potential awards.
shareholder return (TSR) basis, of £100 invested in Glencore plc
on 24 May 2011 (our IPO date) compared with the value of £100
invested in the FTSE 350 Mining Index. The FTSE 350 Mining Index
is considered to be an appropriate comparator for this purpose as
it is an equity index consisting of companies listed in London in
the same sector as Glencore.

IMPLEMENTATION REPORT – AUDITED INFORMATION

CEO pay ratio
Non-Executive fees
The table below shows the ratio of CEO single figure The emoluments of the Non-Executive Directors for 2020 were
remuneration for 2020 to the comparable, indicative, full-time as follows:
equivalent total remuneration for employees globally, whose Total 2020 Total 2019
pay is ranked at the 25th percentile, median and 75th Name US$’000 US$’000
percentile. As we are a global group, which is not headquartered
Non-Executive Chairman
in the UK and whose UK employees represent less than one
Anthony Hayward 1,150 1,150
per cent. of all our employees worldwide, we have decided to
amend this comparison to all employees. Our methodology is Non-Executive Directors
fully compliant with the UK Remuneration Regulations except Peter Coates 310 310
that we have substituted all of our employees for just the UK
Leonhard Fischer 214 280
employees as specified in the Regulations.
Martin Gilbert 300 300
25th 75th John Mack 200 200

Method percentile Median percentile Kalidas Madhavpeddi 188 –
Year (A) pay ratio pay ratio pay ratio
Patrice Merrin 300 265
$8,525 $21,212 $65,025 Gill Marcus 222 240
2020 A
177 : 1 71 : 1 23 : 1
$8,558 $21,238 $64,077 Single figure table

2019 A Ivan Glasenberg US$’000
176 : 1 71 : 1 23 : 1
2020 2019
Salary 1,447 1,447
Additional UK remuneration disclosures
Benefits 4 4
Under UK laws and remuneration regulations, UK companies are
also required to disclose various data comparing the percentage Annual Bonus – –
change in directors’ year-on-year remuneration compared with Long-term incentives – –
employees of the listed company itself, i.e. not on a group-wide Pension 57 52
basis. As Glencore plc has no direct employees, there would be
Total 1,508 1,503
no non-director data to disclose. There have been no changes in
the Company’s levels of pay for directors with the only changes
relating to minor benefits and the impact of Non-Executive The notes to the CEO single figure remuneration table from the
Directors changing committee memberships. On this basis, previous page also apply in relation to the compilation of this
it was considered unnecessary to include such data. table. As no bonuses or long-term incentives have been granted
to Mr Glasenberg, there are no relevant performance measures
Most recent shareholder voting outcomes to be disclosed.
The votes cast to approve the Directors’ remuneration report, for The aggregate fees for all Non-Executive Directors for 2020 were
the year ended 31 December 2019 at the 2020 AGM were: $2,884,000 (2019: $2,745,000).
Votes Votes The total emoluments of all Directors for 2020 (including
Votes “For” “Against” “Withheld1” pension contributions for Mr Glasenberg) were $4,392,000
Directors’ remuneration policy (2019: $4,248,000).
97.28% 2.72% Directors’ interests

(9,718,437,304) (271,822,039) (100,913,371) The Directors’ interests in shares are set out in the Directors’ report
Directors’ remuneration report which is set out after this report. Mr Glasenberg’s holding is
considerably in excess of the proposed formal share ownership
96.59% 3.41%
guideline for Executive Directors of 500% of salary.
(9,655,344,116) (341,081,734) (94,747,475)
Approval
1 A vote withheld is not counted in the calculation of the proportion of votes for and
against the resolution. This report in its entirety has been approved by the Committee
and the Board of Directors and signed on its behalf by:
John Mack
Chair of Remuneration Committee
10 March 2021

DIRECTORS’ REPORT
For the year ended 31 December 2020
John Burton
Company Secretary
INTRODUCTION
This Annual Report is presented by the Directors on the affairs of HEALTH, SAFETY, ENVIRONMENT & COMMUNITIES
Glencore plc (the “Company”) and its subsidiaries (the “Group” or (HSEC)
“Glencore”), together with the financial statements and auditor’s An overview of health, safety and environmental performance
report, for the year ended 31 December 2020. The Directors’ report and community participation is provided in the Sustainable
includes details of the business, the development of the Group Development section of the Strategic report. The work of
and likely future developments as set out in the Strategic Report, the HSEC Board committee is contained in the Corporate
which together form the management report for the purposes of Governance report.
the UK Financial Conduct Authority’s Disclosure and Transparency
Rule (DTR) 4.1.8R. The notice concerning forward-looking GREENHOUSE GAS EMISSIONS
statements is set out at the end of the Annual Report. A summary of the Group’s greenhouse gas emissions is included
on page 19.
CORPORATE STRUCTURE
Glencore plc is a public company limited by shares, incorporated TAXATION POLICY
in Jersey and domiciled in Baar, Switzerland. Its shares are listed Our Tax Policy: glencore.com/group-tax-policy and our most
on the London and Johannesburg Stock Exchanges. recent Payments to Governments report: glencore.com/
payments-to-governments-report set out the Company’s
FINANCIAL RESULTS AND DISTRIBUTIONS
approach to tax and transparency and disclose the payments
The Group’s financial results are set out in the financial statements made by the Group on a country-by-country and project-by-
section of this Annual Report. project basis.
In light of the continued uncertain pandemic / economic outlook
and in order to support the Group’s overall financial position, no EXPLORATION AND RESEARCH AND DEVELOPMENT
distribution was made in 2020. The Group’s business units carry out exploration and research and
The Board is recommending to shareholders an aggregate capital development activities that are necessary to support and expand
distribution of US$0.12 per share in respect of the 2020 financial their operations.
year as further detailed on page 48. EMPLOYEE POLICIES AND INVOLVEMENT
REVIEW OF BUSINESS, FUTURE DEVELOPMENTS Glencore has diversity and recruitment policies that aim to treat
AND POST BALANCE SHEET EVENTS individuals fairly and not to discriminate on the basis of gender,
A review of the business and the future developments of the race, ethnicity, disability, religion or beliefs, or on any other basis.
Group is presented in the Strategic Report. Applications for employment and promotion are fully considered
on their merits, and employees are given appropriate training and
A description of acquisitions, disposals, and material changes to equal opportunities for career development and promotion.
Group companies undertaken during the year is included in the
Financial review and in note 25 to the financial statements. If disability occurs during employment, the Group seeks to
accommodate that disability where reasonably possible, including
FINANCIAL INSTRUMENTS with appropriate training.
Descriptions of the use of financial instruments and financial risk The Group’s Code of Conduct and other policies support and
management objectives and policies, including hedging activities protect the interests of employees in a number of ways such as
and exposure to price risk, credit risk, liquidity risk and cash flow requiring open, fair and respectful communication, zero tolerance
risk are included in notes 26 and 27 to the financial statements. for human rights violations, fair remuneration and, above all, a safe
working environment.
CORPORATE GOVERNANCE
Employee communication is mainly provided by the Group’s
A report on corporate governance and compliance with the intranet, corporate website and via emails. A range of information
UK Corporate Governance Code is set out in the Corporate is made available to employees, including all policies and
Governance report and forms part of this report by reference. procedures applicable to them as well as information on the
Group’s financial performance and the main drivers of its
business. Employee consultation depends upon the type and
location of operation or office but includes Group-wide surveys –
see Our people section on page 27.

DIRECTORS’ CONFLICTS OF INTEREST MAJOR INTERESTS IN SHARES

Under Jersey law and the Company’s Articles of Association Taking into account the information available to Glencore as
(which mirror section 175 of the UK Companies Act 2006), at 26 February 2021, the table below shows the Company’s
a Director must avoid a situation in which the Director has, or understanding of the interests in 3% or more of the Total Voting
can have, a direct or indirect interest that conflicts, or possibly Rights attaching to its issued ordinary share capital:
may conflict, with the interests of the Company. The duty is not Percentage of
infringed if the matter has been authorised by the Directors. Number of Total Voting
Under the Articles, the Board has the power to authorise potential Name of holder Shares Rights
or actual conflict situations. The Board maintains effective Qatar Holding 1,221,497,099 9.17
procedures to enable the Directors to notify the Company of any Ivan Glasenberg 1,211,957,850 9.10
actual or potential conflict situations and for those situations to
BlackRock Inc 886,856,436 6.66
be reviewed and, if appropriate, to be authorised by the Board.
Directors’ conflict situations are reviewed annually. A register Harris Associates 516,588,214 3.88
of authorisations is maintained. Aristotelis Mistakidis 463,675,134 3.48
Daniel Mate 454,136,143 3.41
DIRECTORS’ LIABILITIES AND INDEMNITIES
The Company has granted third party indemnities to each of its
Directors against any liability that attaches to them in defending SHARE CAPITAL
proceedings brought against them, to the extent permitted by
Jersey law. In addition, Directors and Officers of the Company and The rights attaching to the Company’s ordinary shares, being the
its subsidiaries are covered by directors & officers liability insurance. only share class of the Company, are set out in the Company’s
Articles of Association (the “Articles”), which can be found at
DIRECTORS AND OFFICERS glencore.com/who-we-are/governance/. Subject to Jersey
The names of the Company’s Directors and Officers who were in law, any share may be issued with or have attached to it such
office at the end of 2020, together with their biographical details preferred, deferred or other special rights and restrictions as
and other information, are shown on pages 88 – 89. the Company may by special resolution decide or, if no such
resolution is in effect, or so far as the resolution does not make
DIRECTORS’ INTERESTS specific provision, as the Board may decide.
Details of interests in the ordinary shares of the Company of those No such resolution is currently in effect. Subject to the
Directors who held office during 2020 are given below: recommendation of the Board, holders of ordinary shares may
receive a distribution. On liquidation, holders of ordinary shares
Number of Percentage of
Glencore Total Voting may share in the assets of the Company.
Name Shares Rights Holders of ordinary shares are also entitled to receive the
Executive Directors Company’s Annual Report and Accounts (or a summarised
Ivan Glasenberg 1,211,957,850 9.09 version) and, subject to certain thresholds being met, may
Non-Executive Directors requisition the Board to convene a general meeting (GM)
or submit resolutions for proposal at AGMs. None of the
Anthony Hayward 244,907 0.00
ordinary shares carry any special rights with regard to control
Peter Coates 1,665,150 0.01 of the Company.
Leonhard Fischer – – Holders of ordinary shares are entitled to attend and speak at
Martin Gilbert 50,000 0.00 GMs of the Company and to appoint one or more proxies or, if the
John Mack 750,000 0.00 holder of shares is a corporation, a corporate representative. On a
show of hands, each holder of ordinary shares who (being an
Kalidas Madhavpeddi – –
individual) is present in person or (being a corporation) is present
Gill Marcus – –
by a duly appointed corporate representative, not being himself
Patrice Merrin 60,000 0.00 a member, shall have one vote. On a poll, every holder of ordinary
shares present in person or by proxy shall have one vote for every
share of which he or she is the holder. Electronic and paper proxy
SHARE CAPITAL AND SHAREHOLDER RIGHTS appointments and voting instructions must be received not later
As at 26 February 2021, the issued ordinary share capital of the than 48 hours before a GM. A holder of ordinary shares can lose
Company was $145,862,001 represented by 14,586,200,066 the entitlement to vote at GMs where that holder has been served
ordinary shares of $0.01 each, of which 1,261,887,525 shares are held with a disclosure notice and has failed to provide the Company
in treasury and 81,000,508 shares are held by Group employee with information concerning interests held in those shares. Except
benefit trusts. as (1) set out above and (2) permitted under applicable statutes,
there are no limitations on voting rights of holders of a given
percentage, number of votes or deadlines for exercising
voting rights.

DIRECTORS’ REPORT
The Directors may refuse to register a transfer of a certificated PURCHASE OF OWN SHARES
share which is not fully paid, provided that the refusal does not There was no purchase of own shares by the Company in 2020.
prevent dealings in shares in the Company from taking place on
an open and proper basis or where the Company has a lien over GOING CONCERN
that share. The financial position of the Group, its cash flows, liquidity position
The Directors may also refuse to register a transfer of a certificated and borrowing facilities are set out in the Strategic Report.
share unless the instrument of transfer is: Furthermore, notes 26 and 27 to the financial statements include
the Group’s objectives and policies for managing its capital, its
(i) lodged, duly stamped (if necessary), at the registered office
financial risk management objectives, details of its financial
of the Company or any other place as the Board may
instruments and hedging activities and its exposure to credit and
decide accompanied by the certificate for the share(s) to
liquidity risk. Significant financing activities that took place during
be transferred and/or such other evidence as the Directors
the year are detailed in the Financial review section, which starts
may reasonably require as proof of title; or
on page 44.
(ii) in respect of only one class of shares
The results of the Group, principally pertaining to its industrial
Transfers of uncertificated shares must be carried out using asset base, are exposed to fluctuations in both commodity prices
CREST and the Directors can refuse to register a transfer of an and currency exchange rates whereas the performance of
uncertificated share in accordance with the regulations governing marketing activities is primarily physical volume driven with
the operation of CREST. commodity price risk substantially hedged.
The Directors may decide to suspend the registration of transfers, The Directors have a reasonable expectation, having made
for up to 30 days a year, by closing the register of shareholders. The appropriate enquiries, that the Group has adequate resources
Directors cannot suspend the registration of transfers of any to continue in its operational existence for the foreseeable future.
uncertificated shares without obtaining consent from CREST. For this reason they continue to adopt the going concern basis in
There are no other restrictions on the transfer of ordinary shares in preparing the financial statements. The Directors have made this
the Company except: (1) certain restrictions may from time to time assessment after consideration of the Group’s budgeted cash
be imposed by laws and regulations (for example insider trading flows and related assumptions including appropriate stress
laws); (2) pursuant to the Company’s share dealing code whereby testing of the identified uncertainties (being primarily commodity
the Directors and certain employees of the Company require prices and currency exchange rates) and undrawn credit facilities,
approval to deal in the Company’s shares; and (3) where a monitoring of debt maturities, and after review of the Guidance
shareholder with at least a 0.25% interest in the Company’s issued on Risk Management, Internal Control and Related Financial and
share capital has been served with a disclosure notice and has Business Reporting 2014 as published by the UK Financial
failed to provide the Company with information concerning Reporting Council.
interests in those shares. There are no agreements between
LONGER-TERM VIABILITY
holders of ordinary shares that are known to the Company,
which may result in restrictions on the transfer of securities or In accordance with provision 31 of the Code, the Directors have
on voting rights. assessed the prospects of the Group’s viability over a longer
period than the 12 months required by the going concern
The rules for appointment and replacement of the Directors are
assessment above. A summary of the assessment made is set
set out in the Articles. Directors can be appointed by the Company
out on pages 73 – 74 in the Risk Management section.
by ordinary resolution at a GM or by the Board upon the
recommendation of the Nomination Committee. The Company Based on the results of the related analysis, the Directors have a
can remove a Director from office, including by passing an reasonable expectation that the Group will be able to continue in
ordinary resolution or by notice being given by all the other operation and meet its liabilities as they fall due over the four-year
Directors. The Company may amend its Articles by special period of this assessment. They also believe that the review period
resolution approved at a GM. of four years is appropriate having regard to the Group’s business
model, strategy, principal risks and uncertainties, sources of
The powers of the Directors are set out in the Articles and
funding and liquidity.
provide that the Board may exercise all the powers of the
Company including to borrow money. The Company may by AUDITOR
ordinary resolution authorise the Board to issue shares, and
Each of the persons who is a Director at the date of approval of
increase, consolidate, sub-divide and cancel shares in accordance
this Annual Report confirms that:
with its Articles and Jersey law.
a. so far as the Director is aware, there is no relevant audit
information of which the Company’s auditor is unaware; and
b. the Director has taken all the steps that he or she ought to have
taken as a director in order to make himself or herself aware of
any relevant audit information and to establish that the
Company’s auditor is aware of that information.
Deloitte LLP have expressed their willingness to continue in office
as auditor and a resolution to reappoint them will be proposed at
the forthcoming AGM.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES However, the Directors are also required to:
The Directors are responsible for preparing the Annual Report and • Properly select and apply accounting policies
financial statements in accordance with applicable law • Present information, including accounting policies, in a manner
and regulations. that provides relevant, reliable, comparable and
Company law requires the Directors to prepare financial understandable information
statements for the Company for each financial year. • Provide additional disclosures when compliance with the
The financial statements are prepared in accordance with specific requirements in IFRSs are insufficient to enable users
International Financial Reporting Standards (IFRS) adopted to understand the impact of particular transactions, other
pursuant to Regulation (EC) No 1606/2002 as it applies in the events and conditions on the entity’s financial position and
European Union and IFRS as issued by the International financial performance
Accounting Standards Board. The financial statements are • Make an assessment of the Company’s ability to continue as a
required by law to be properly prepared in accordance with the going concern
Companies (Jersey) Law 1991. International Accounting Standard 1
requires that financial statements present fairly for each financial The Directors are responsible for keeping proper accounting
year the Company’s financial position, financial performance and records that disclose with reasonable accuracy at any time the
cash flows. This requires the faithful representation of the effects of financial position of the Company and enable them to ensure
transactions, other events and conditions in accordance with the that the financial statements comply with the Companies (Jersey)
definitions and recognition criteria for assets, liabilities, income Law 1991. They are also responsible for safeguarding the assets of
and expenses set out in the International Accounting Standards the Company and hence for taking reasonable steps for the
Board’s Framework for the preparation and presentation of prevention and detection of fraud and other irregularities. The
financial statements. Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s
In virtually all circumstances, a fair presentation will be achieved website. The legislation governing the preparation and
by compliance with all applicable IFRSs. dissemination of the Company’s financial statements may differ
The Directors confirm that the Annual Report and accounts taken, from legislation in other jurisdictions.
as a whole, is fair, balanced and understandable, and provides the Signed on behalf of the Board
information necessary for shareholders to assess the performance,
strategy and business model of the Company
John Burton
Company Secretary
10 March 2021

DIRECTORS’ REPORT
INFORMATION REQUIRED BY LISTING RULE LR 9.8.4C

In compliance with UK Listing Rule 9.8.4C the Company discloses the following information:
Listing Rule Information required Relevant disclosure
9.8.4(1) Interest capitalised by the Group See note 8 to the financial statements
9.8.4(2) Unaudited financial information as required (LR 9.2.18) See Chief Executive Officer’s review
9.8.4(5) Director waivers of emoluments See Directors’ remuneration report
9.8.4(6) Director waivers of future emoluments See Directors’ remuneration report
9.8.4(12) Waivers of dividends See note 18 to the financial statements
9.8.4(13) Waivers of future dividends See note 18 to the financial statements
9.8.4(14) Agreement with a controlling shareholder (LR 9.2.2A) Not applicable
There are no disclosures to be made in respect of the other numbered parts of LR 9.8.4.
CONFIRMATION OF DIRECTORS’ RESPONSIBILITIES

We confirm that to the best of our knowledge:
• the consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS) adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, and IFRS as issued by the International Accounting
Standards Board and the Companies (Jersey) Law 1991, give a true and fair view of the assets, liabilities, financial position and income
of the Group and the undertakings included in the consolidation taken as a whole
• the management report, which is incorporated in the Strategic Report, includes a fair review of the development and performance
of the business and the 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 2020 were approved on the date below by the
Board of Directors.
Signed on behalf of the Board:
Anthony Hayward Ivan Glasenberg

Chairman Chief Executive Officer
10 March 2021

RESPONSIBILITY
In our oil business, Andrew says, people have that sense of
ownership and responsibility because they are overseeing
a vessel from loading to unloading.
“When I think of responsibility, I think of

ownership. When you have something that
Andrew McNamara you’re responsible for, you need to own it…
you need to understand it… you need to
U.S. Head of Marketing
Operations, Oil –
make sure it gets done the right way.”
United States
“Getting it into a port, loading it successfully,
getting it into the discharge port. You really
take pride”
Learn more about our culture and how

we work safely on www.glencore.com
OPENNESS
She believes that by being open – listening to and appreciating
what’s on people’s minds – you can help them to improve their
work, because people feel better when they know that they are
heard and understood
“For me, openness is about communicating,

Jacqueline Ramirez
knowing how to connect with others.”
Materials Dispatcher – Chile Learn more about our culture and how we
work with openness on www.glencore.com
FINANCIAL
STATEMENTS
Independent Auditor’s Report
to the members of Glencore plc 118
Consolidated statement of income 131
of comprehensive income 132
of financial position 133
Consolidated statement of cash flows 134
Consolidated statement of changes
of equity 136
Notes to the financial statements 137

INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF GLENCORE PLC
Report on the audit of the financial statements
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 2020 and of the Group’s loss for the year then ended;
• have been properly prepared in accordance with International Financial Reporting Standards (“IFRSs”) adopted pursuant to
Regulation (EC) No 1606/2002 as it applies to the European Union and 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 34.
The financial reporting framework that has been applied in their preparation is applicable law and IFRSs adopted pursuant to
Regulation (EC) No 1606/2002 as it applies in the European Union and as issued by the IASB.
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 29 to the financial statements. We confirm that the non-audit services prohibited by the FRC’s Ethical
Standard were not provided to the Group.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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;
• Marketing revenue recognition and fair value measurements;
• Classification of trading contracts and arrangements which contain a financing element, 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 2019, except that:
• This year we identified the potential impact of climate change on non-current assets as a separate key audit
matter, due to the increased evidence that policies being adopted to combat climate change could have a
material impact on the financial statements. In the prior year, this issue was included within the “Impairment
of non-current assets” key audit matter.
• We removed “Credit and performance risk” and “Fair value measurements” as individual key audit matters, as
there were fewer significant accounting complexities and judgements in these areas of our audit in the
Marketing segment in the current year, and the amendments in the “Impairment of non-current assets” and
“Marketing revenue recognition and fair value measurements” key audit matters cover the significant
elements of these specific risks.
• The prior year key audit matter “Classification of financial instruments” has been broadened and renamed to
“Classification of trading contracts and arrangements which contain a financing element”, to reflect specific
risk focus and the wider range of arrangements in scope of this key audit matter.
Materiality The materiality that we used for the Group financial statements in the current year was $175 million
(2019: $250 million), which was determined on the basis of the average 3-year adjusted pre-tax profit
consistent with prior years.
Scoping We focused our Group audit scope primarily on the audit work at 38 components, representing the Group’s
most material marketing operations and industrial assets. These 38 components account for 80% of the Group’s
net assets, 88% of the Group’s revenue and 91% of the Group’s adjusted EBITDA (refer to segment information in
note 2 to the financial statements).
Significant changes Other than performing the audit work largely remotely due to the Covid-19 pandemic and the changes to key
in our approach audit matters discussed above, there were no significant changes to our audit approach when compared to 2019.
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 consider to have the greatest impact are supply, demand and prices of commodities over the forecast period.
• 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 challenged 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 EBITDA over the going concern period and performed additional sensitivities to
further challenge the Group’s forecast position.
• We challenged whether 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.
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.

Report on the audit of the financial statements continued
GOVERNMENT INVESTIGATIONS
Description of key audit matter How the scope of our audit responded to the key audit matter
The Group is subject to certain investigations by regulatory and In response to the investigations by regulatory and enforcement
enforcement authorities as disclosed in Note 31 to the financial authorities we performed the following:
statements. The Board discussions on this matter are set out in
• We gained an understanding of the Investigations Committee’s
the Corporate Governance Report on page 90 and the Group’s
and General Counsel’s process for reviewing the IAS 37
discussion on the Laws and enforcement principal risk in the
assessment and review of the disclosures in the Annual Report.
Strategic Report set out on pages 76–77.
• We attended regular briefings from the General Counsel and
The Investigations Committee of the Board is overseeing
the Group’s external legal counsel during the year.
the Group’s response to these investigations. The Group has
• We assessed the competence, capability and objectivity of the
engaged external legal counsel and forensic experts (“the
advisors used by the Group.
advisors”) to assist the Group in responding to the various
investigations, to represent it in litigation and to perform • We considered whether the advisors’ scope and outcomes as
additional investigations at the request of the Investigations described to us were sufficient to inform the Investigations
Committee covering various aspects of the Group’s business. Committee’s assessment and representation of whether a
present obligation exists and a provision should be recorded at
The Group is continuing to cooperate with the various authorities,
31 December 2020.
including through reporting to those authorities facts relevant to
• We included Deloitte forensic specialists, experienced in similar
their investigations. The investigations are complex and dynamic
investigations, in our team to understand and challenge the
including in relation to scope. The timing and outcome of the
adequacy of the scope and outcomes of the work of the
various investigations remain uncertain.
advisors. This work included understanding the investigation
The judgement of the Investigations Committee (guided by the methodology applied by the advisors in identifying the relevant
General Counsel and the Group’s external legal counsel) is needed facts for reporting to the enforcement authorities.
to determine whether a present obligation exists and a provision
• We reviewed correspondence with the investigating authorities
should be recorded at 31 December 2020 in accordance with the
and the internal meeting minutes of the Investigations
accounting criteria set out under IAS 37 Provisions, Contingent
Committee.
Liabilities and Contingent Assets.
• We enquired of the General Counsel and the Group’s external
At 31 December 2020, taking all available evidence into account, legal counsel as to the current stage of the various regulatory
the Investigations Committee concluded that it is not probable and enforcement proceedings and assessed against our
that a present obligation existed at the end of the reporting understanding of a typical investigation cycle and our
period for the above regulatory and enforcement proceedings. assessment of the status of where the various regulatory
The timing and amount, if any, of financial effects (such as fines, authorities are in their investigation.
penalties or damages, which could be material) or other
• We enquired of the Investigations Committee, the General
consequences, including external costs, from any of the various
Counsel and the Group’s external legal counsel as to their
investigations and any change in their scope is not possible
awareness of identified known or likely non-compliance from
to predict or estimate. Consequently, no liability has been
the investigations to date which could indicate the existence of
recognised, nor has any estimate of the contingent liability
a present obligation at 31 December 2020 and whether any
been disclosed, in relation to these matters in the consolidated
such non-compliance could result in a potential material
statement of financial position at 31 December 2020.
outflow (penalty or fine).
We identified a key audit matter related to the risk that a material • Working with our Deloitte forensic specialists, we considered
provision is required to settle the various investigations, which is whether the Investigations Committee’s conclusions were
not recorded in the current year’s financial statements. As a result, reasonable that a present obligation did not exist at the end of
the disclosure as a contingent liability may not be adequate. the reporting period and that the timing and amount, if any, of
financial effects from any of the various 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 timing of the completion of the regulatory and enforcement proceedings
and the outcome thereof are uncertain. Consistent with the Investigations Committee and the General Counsel, we concurred that no
present obligation existed to settle any potential fines or penalties associated with these proceedings. We concurred that the disclosure
of a contingent liability as set out under “Legal and regulatory proceedings” in note 31 of the financial statements is appropriate.

IMPAIRMENTS OF NON-CURRENT ASSETS
The carrying value of the Group’s non-current assets within We obtained an understanding of the methodology applied
the scope of IAS 36 Impairment of assets includes intangible by management in developing its impairment assessments
assets, property, plant and equipment (“PPE”), non-current with the help of internal experts, which included understanding
advances and loans and investments in associates and the inherent subjectivity and complexity of underlying key
joint ventures, which amounted in total to $69,019 million at assumptions, as well as relevant controls in management’s
31 December 2020. impairment assessment process.
Various factors influence the demand for and profitability of We assessed the competence, capability and objectivity of
Glencore’s commodities and services, which management need management’s experts responsible for preparing the resources
to monitor closely in assessing the recoverability of non-current and reserves statements.
assets such as: We reviewed management’s assessment of impairment risk and
• The volatility in expected future prices of commodities key to its assessment of the indicators of impairment and challenged
the Group (particularly coal, oil, copper, cobalt, zinc, ferroalloys the significant assumptions used and the data sources on
and nickel), foreign exchange rates, production levels, operating which these assumptions were based. We considered the risk
costs and discount rates; of management bias in forecast assumptions and estimates
by analysing management’s inputs against third party forecast
• Changes in mining and tax legislation, political and other
and macroeconomic data, Deloitte’s independent assessment
macro-economic developments;
of discount rates, and reconciliations to latest internal
• Responses to climate change impacts by regulators and
budget information.
consumers, which could negatively impact demand for the
Group’s products, particularly coal (refer to ‘Potential impact We performed an independent assessment of impairment
of climate change on non-current assets’ key audit matter indicators.
below), and We challenged management’s sensitivity analyses by performing
• Geological and other operational challenges that negatively independent sensitivity analyses using management’s models,
affect an asset’s performance over time. including for certain assets which were not identified by
management as having indicators of impairment but which
For non-current advances and loans, the Group is exposed to have a higher risk of impairment due to lower available headroom
credit and performance risk arising from risks related to non- in discounted cash flow models.
performance by the counterparty, particularly in markets
We updated our assessment of management’s determination of
demonstrating significant price volatility with limited liquidity and
cash-generating units (“CGUs”) by reference to the requirements
terminal markets. Assessing counterparty risk, solvency and
of the accounting standards and our understanding of the nature
liquidity can be highly subjective. This risk is heightened in times
of the mining operations and the interdependency of cash inflows
of increased price volatility, such as that caused by the Covid-19
between various assets / groups of assets.
pandemic, where suppliers may be incentivised to default on
delivery and customers may be unwilling to take contracted Where indicators of impairment were identified, we performed
deliveries or be unable to pay. detailed testing on management’s impairment calculations and
where appropriate based on our risk assessment, we utilised
When an impairment indicator exists in the Group’s significant
Deloitte valuation and mining specialists to assess the
assets and investments, management completes an impairment
appropriateness of management’s underlying model inputs and
review.
key assumptions, and the basis for technical mining, operational
As disclosed in note 6, pre-tax impairments totalling $5,508 million and financial inputs (e.g. reserve and resource estimation,
were recorded in PPE and intangible assets and $343 million of production parameters, grade and recovery rates, resource
impairments were recognised on various other items. In addition, conversion rates, and operating and capital costs). Production
as disclosed in note 10, $752 million of pre-tax impairments were and cost assumptions were cross checked against historical
recognised in investments in associates and joint ventures. No performance as well as approved budgets and life of mine plans,
impairment reversals were recorded during the period. where applicable, and mineable tonnes assumptions were
The outcome of impairment assessments could vary significantly assessed against reserves and resources estimates. Where
if different assumptions were applied and readers are specifically appropriate, benchmarking across similar assets in the same
referred to the sensitivity disclosures made by the Group within commodity and geographic region was performed.
“Key sources of estimation uncertainty” in note 1, additional For non-current advances and loans (see note 11), we obtained
disclosures within notes 6 and 10, as well as the Audit Committee an understanding of management’s method of assessing
Report on page 98. these assets for impairment, which included obtaining an
As a result, we have identified a potential risk of fraud through understanding of relevant controls in the Group’s centralised
management bias due to the significant estimation uncertainty and local credit and performance risk monitoring processes.
and subjectivity in certain judgements and key assumptions We challenged management’s assessment of recoverability
applied by management in its impairment assessment. of these advances and loans by reviewing supporting agreements
and obtaining evidence of current performance, correspondence
with the third party and any other information we are aware of
that may influence the third party’s ability to perform.
We challenged management’s assessment of the recoverability of
loans and advance payments with delayed or overdue deliveries,
considering historical patterns of trading and settlement as well as
recent communications with the counterparties and other post
balance sheet date evidence.
We assessed the adequacy of impairment related disclosures in
the financial statements, including the key assumptions used and
the completeness and accuracy of sensitivities disclosed.

IMPAIRMENTS OF NON-CURRENT ASSETS CONTINUED
KEY OBSERVATIONS
Based on the results of our assessment of management’s methodology for impairment 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 concluded that key assumptions to which impairment outcomes were sensitive were reasonable overall in comparison to third
party evidence and / or our specialists’ developed acceptable ranges. For certain impairment models, management applied risk
adjustments to cash flows, and thus applied discount rate assumptions that excluded such risks. Our assessment of an independent
discount rate incorporated such risks into the discount rate, and we concluded that management’s approach was reasonable as the
two approaches yielded similar outcomes.
In the course of auditing management’s impairment models, we identified certain modelling errors which were subsequently
corrected by management. These errors were not detected by management’s review processes, and therefore they constituted control
deficiencies. Based on the results of this testing, we concluded that the recoverable amounts for the CGUs tested were within an
acceptable range of outcomes, although subject to high levels of estimation uncertainty. We considered management’s disclosures on
key assumptions and impairment sensitivities and found them to be in compliance with IFRS requirements.
We concluded that the Group’s provisioning in relation to non-current loans and advances was appropriate.
POTENTIAL IMPACT OF CLIMATE CHANGE ON NON-CURRENT ASSETS
As described on pages 16 to 21, climate change, and the world’s We worked with Deloitte internal environmental specialists in
response to climate change, present significant risks and considering potential climate change risk factors such as stranded
uncertainties for Glencore’s energy industrial assets as a result of assets, green taxes, the potential impact of activities of investors
the sensitivity to demand for future fossil fuels, particularly thermal and other stakeholders, environmental legislation, loss of customers
coal. Glencore’s thermal coal portfolio at 31 December 2020 has a or demand and loss of sources of – and access to – funding.
carrying value of $11.9 billion. We challenged management’s assertion on the impact of
As described on page 16, in December 2020 the Group published climate-related risks relating to its thermal coal portfolio by
its Climate Report 2020: Pathway to net zero, which sets out the comparing management’s impact assessment with reputable
Group’s target of a 40% reduction in total emissions by 2035 and publicly available industry projections of demand and long-term
its ambition to achieve net zero total emissions by 2050. prices into the future, such as the STEPS and SDS scenarios.
To test the resilience of its portfolio to the impacts of climate We reviewed the time period through which coal CGUs are valued
change, the Group has developed three scenarios: (life of mine plan) to assess if the assumptions are consistent with
management’s long-term investment plans, public disclosures
• Current Pathway scenario, consistent with the IEA Stated
and credible external scenarios about energy transition timing
Policies scenario (STEPS);
and effects.
• Rapid Transition scenario, consistent with IEA Sustainable
We reviewed management’s impairment models and reperformed
Development scenario (SDS), and
the calculation of sensitivities in note 1 applying the IEA’s short- to
• Radical Transformation scenario, consistent with the IEA Net
long-term price assumptions.
Zero Emissions by 2050 scenario (NZE2050).
We considered whether management’s sensitivity and estimation
Glencore’s base case production decline profile used in its internal uncertainty disclosures were adequate in the context of climate
modelling and business plans is consistent with the Group’s net change risks and uncertainties.
zero ambition. However, as explained in note 1, the base case price
We read the other information included in the annual report and
assumptions used in management’s impairment assessment
considered whether there was any material inconsistency
(see the key audit matter above) are higher than those assumed
between the other information and the financial statements, or
in STEPS and SDS.
whether there was any material inconsistency between the other
While under all credible scenarios, fossil fuels (coal, gas and oil) will information and our understanding of the business based on
continue to be part of the global energy mix into the future, audit evidence obtained and conclusions reached in the audit.
policies supporting the Rapid Transition and Radical
Transformation scenarios would lead to significant coal demand
decline over the longer term and likely lower prices.
The Group has set out in note 1 to the financial statements
illustrative impairment downside impacts to current carrying
values at possible commodity price curves consistent with STEPS
and SDS. Under STEPS the illustrative impairment is $2.5 billion
while under SDS the illustrative impairment is $7.7 billion.
We identified a key audit matter relating to the accuracy and
presentation of this analysis and the consistency of the Group’s
net zero ambition with its internal modelling and business plans,
including those used in its impairment assessment.

POTENTIAL IMPACT OF CLIMATE CHANGE ON NON-CURRENT ASSETS CONTINUED
KEY OBSERVATIONS
We found no inconsistencies between management’s impairment forecasts and its stated response to climate change, as described in
the Strategic Report. In relation to assumptions about external markets, and in particular future coal prices, we found management’s
impairment assumptions to be reasonable when compared to reputable publicly available industry projections, notwithstanding that
we observed management’s coal price assumptions to be generally higher than thermal coal prices in the subset of scenarios that are
predicated on a starting assumption that the Paris goals will be met, such as the IEA’s SDS scenario. 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 thermal coal portfolio at 31 December 2020.
We concluded that the potential future financial impact of climate change on thermal coal impairment tests arising from reasonably
possible changes in management’s impairment assumptions in the next financial year (as specifically required by IAS 1), and
additionally over the longer-term is appropriately disclosed in note 1 to the financial statements.
MARKETING REVENUE RECOGNITION AND FAIR VALUE MEASUREMENTS
Glencore generates revenue as a fee-like income from distribution We reviewed Glencore’s accounting policies on revenue
of physical commodities and arbitrage, including blending and recognition and fair value measurements to assess compliance
other optimisation opportunities. with the requirements of IFRS.
Marketing revenue for the year (prior to inter-segment Specifically for the Marketing segment:
eliminations) was $124,137 million (2019: $194,188 million). Refer to
• We tested relevant controls surrounding the completeness and
note 1 for the revenue recognition accounting policies and note 2
accuracy of trade capture and the revenue and trade cycle.
for segment information.
• We tested general IT controls surrounding major technology
The decrease in revenues year on year is principally due to the
applications and critical interfaces involving revenue recognition
impact of lower commodity prices in the first half arising from a
and the completeness and accuracy of trade capture.
number of macro forces primarily Covid-19 linked, but also OPEC+’s
• We utilised data analytics tools to trace realised revenue to cash
supply response deliberations. In the second half, a rebound in
receipts and to enhance audit effectiveness over large
demand for commodities coupled with supply constraints led
transaction volumes.
to extreme levels of market volatility, amid rapidly and materially
changing underlying supply and demand scenarios. This backdrop • We agreed, on a sample basis, deliveries occurring on or around
provided overall supportive physical commodity marketing 31 December 2020 between the trade book system and the
conditions leading to the profitability of the Marketing business. relevant shipping documents to assess whether the IFRS
revenue recognition criteria were met for recorded sales.
Judgement is required to determine when control is transferred
• We tested the accuracy and completeness of unrealised trades
under certain contractual arrangements with third parties,
as of the reporting date by tracing and agreeing a sample of
especially on or around year-end reporting periods, and in
trades entered into around the year-end from their source
particular where the sale of goods is connected with an
documents to the trade book system.
agreement to repurchase goods at a later date.
• We tested relevant internal controls over management’s fair
Marketing related activities depend on the reliability of the trade
value measurement processes and performed detailed
capture systems and their IT infrastructure environment. As the
substantive testing of the related fair value measurements on a
majority of the Group’s trades and marketing inventories are
sample basis.
measured at fair value through profit or loss (through either revenue
• We worked with financial instrument specialists with
or cost of goods sold), a complete and accurate trade capture process
experience in commodity trading, to test significant
that includes all specific and bespoke terms within the commodity
unobservable inputs utilised in ‘Level 3’ measurements in the
contracts is critical for accurate financial reporting and monitoring of
fair value hierarchy as set out in notes 27 and 28 to the financial
trade book exposures and performance. We identified a risk that the
statements. This work included assessing management’s
capture of trades and their key contractual terms within the trade
valuation assumptions against independent price quotes,
book could be incomplete or inaccurate, either due to fraud or error,
recent transactions, and other relevant documentation.
resulting in misstatement of unrealised revenue and gross margin.
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, credit risk assessments,
market volatility and forecast operational estimates). At 31
December 2020, total ‘Level 3’ financial assets and liabilities
amounted to $690 million and $480 million respectively.
We refer readers to “Key sources of estimation uncertainty” within
note 1 and additionally notes 27 and 28.
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.
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.
CLASSIFICATION OF TRADING CONTRACTS AND ARRANGEMENTS WHICH CONTAIN A FINANCING ELEMENT
Glencore trades a diverse portfolio of commodities and utilises a We obtained an understanding of the trading strategies
wide variety of trading strategies in order to profit from volatility and associated product flows within the Group’s marketing
in market prices, differentials and spreads whilst maximising departments, including gaining an understanding of the
flexibility and optionality. relevant controls over market risk management using financial
The classification of contracts relating to the Group’s Marketing instrument specialists embedded within the audit team with
segment can be complex, particularly distinguishing the Group’s experience in commodity trading.
regular marketing contracts, which are measured at fair value We analysed the trade books to understand unusual or complex
through profit or loss, from those sales contracts where the Group derivatives open at year-end. We also analysed the trading results
physically delivers its own production to a third party with no for portfolios designated as “own use” for evidence of any net
history or intention of net settlement (“own use”), which are settlements, which may indicate potential tainting of the IFRS 9
exempt from fair value measurement (i.e. mark-to-market Financial Instruments “own use” criteria.
accounting). We challenged management’s judgement and conclusions
Transactions for the sale or purchase of commodities may contain associated with the classification and accounting for new
a financing element, such as prepayments or extended payment significant arrangements and / or significant changes to existing
terms, which may require judgement in determining the most arrangements containing a financing element. Our challenge
appropriate accounting classification, presentation and disclosure. included evaluation of the commercial substance of the
Refer to notes 1, 21, 24, 27 and 28. 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 significant judgements applied in 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.

TAXATION: UNCERTAIN TAX POSITIONS AND THE RECOGNITION AND RECOVERABILITY OF DEFERRED TAXES
The global tax environment is complex, particularly with respect We engaged Deloitte tax specialists to assist in executing the
to cross border transactions. Furthermore, the interpretation following audit procedures:
and application of tax legislation in certain jurisdictions in which
• We reviewed and challenged management’s assessment
the Group operates can be unclear and unpredictable. There
of uncertain tax positions by reviewing correspondence with
continues to be an increase in enforcement activities, and
local tax authorities and reviewing third party expert tax
increasingly stringent interpretations of existing legislation by
opinions where appropriate, to assess the adequacy of
local revenue authorities.
associated liabilities and disclosures having consideration
These developments give rise to complexity and uncertainty in of the IFRIC 23 guidance.
respect of the calculation of income taxes and deferred tax assets
• We considered the appropriateness of management’s
and consideration of contingent liabilities associated with tax
assumptions and estimates to support the recognition of
years open to audit and other exposures. The accounting
deferred tax assets with reference to forecast taxable profits.
interpretation IFRIC 23 Uncertainty over Income Tax Treatments
We challenged the appropriateness of management’s tax
is used by the Group together with IAS 12 Income Taxes to assess
utilisation models by comparing these forecasts against the
and measure the uncertainty over income tax treatments.
relevant entities’ budgets or underlying asset life of mine plans.
As disclosed in notes 1 and 7: • We challenged management on the adequacy of disclosures in
• Management has updated its assessment of uncertain tax the financial statements in relation to deferred tax assets and
positions and the recognition and recoverability of deferred liabilities for uncertain tax positions and the respective
taxes. In recognising a liability for these taxation exposures, sensitivity disclosures provided.
consideration was given to the range of possible outcomes to • In respect of tax exposures in the DRC:
determine the Group’s best estimate of the amount to provide. ‒ We challenged management’s position by inspecting
As at 31 December 2020, the Group has recognised $1,189 correspondence with local tax authorities, reviewing third
million of uncertain tax liabilities related to possible adverse party expert tax opinions where appropriate, and utilising
outcomes of these open matters. Deloitte local DRC tax specialists to assess the probability of
• At 31 December 2020 the Group has recorded total deferred the tax exposures submitted by the various tax authorities.
tax liabilities of $4,721 million and total deferred tax assets of ‒ We challenged the adequacy of associated liabilities and
$2,252 million. disclosures having consideration of the IFRIC 23 guidance.
• During 2018, the DRC parliament adopted a new mining code ‒ In respect of the recognition of a full deferred tax asset in
(“2018 Mining Code”) which introduced wide-ranging reforms Kamoto Copper Company (“KCC”), we challenged
including the introduction of higher royalties, a new Super management’s position regarding uncertainties arising from
Profits Tax regime and further regulatory controls. The the application of the 2018 Mining Code and current
uncertainties of the 2018 Mining Code, specifically the negotiations with the DRC tax authorities having regard to
application and interpretation of the Super Profits Tax, remain. the current dispute resolution process.
• During the latter half of 2020, various tax authorities in the DRC
issued assessments denying financing related costs and other
items, along with customs related claims for alleged non-
compliance or incorrect coding on certain filings. The Group is
currently engaged with these tax authorities working through a
dispute resolution process.
As a result, we have identified a risk of material misstatement of
the liability for uncertain tax positions and 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.
KEY OBSERVATIONS
Based on our audit work on the Group’s tax liabilities and deferred tax assets recorded at 31 December 2020, we concur that the
recorded liabilities for uncertain tax positions and deferred tax assets and related disclosures are appropriate.

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.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group materiality Group materiality: $175 million (2019: $250 million)

and performance
materiality Group performance materiality: $114 million (2019: $175 million)
The applied materiality is approximately 5% of the average 3-year adjusted pre-tax profit (2019: 5%), and equates
to less than 1% (2019: less than 1%) of equity.
Group Performance Maximum allowed component Audit Committee
materiality materiality performance materiality reporting threshold
(US$ million) (US$ million) (US$ million) (US$ million)
250 250
175 175 175
114
105
87.5 87.5
70 68
57
Market-
Market-
Market-
asset
asset
asset
12 12 9
Ind
Ind
Ind
ing
ing
ing
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
Basis for Consistent with the methodology applied in prior years, we have determined materiality by using a percentage
determining of the 3-year average (for 2020: 2018-2020) adjusted pre-tax profit. The selected materiality is 11.4% of current year
materiality and adjusted pre-tax profit without the effect of averaging (2019: 12.3%).
performance
materiality 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.
Group performance materiality for the 2020 audit has been set at $114 million at 65% of Group materiality (2019:
70% of Group materiality), based on our past audit experience, a low number of uncorrected misstatements
identified in prior years and taking into account the potential effect of the Covid-19 pandemic on the Group’s
control environment. Similarly, component audit procedures are scoped with reference to the component
performance materiality (see ranges applied below) which is set at an appropriate percentage of the materiality
applied at the individual component level.
Due to the diversified nature of the Group’s operations, we have historically introduced a maximum allowed
component performance materiality such that our scoping and component level procedures are set at a level that
is commensurate with the contributions of each component. The maximum permitted performance materiality
for components within the Marketing segment was $68 million. Component performance materiality for
controlled industrial assets was limited to $57 million owing to their lower contribution to pre-tax profits on an
individual basis, while for associates and joint ventures it was limited to $102 million (at a grossed up 100%
holding).
The performance materiality applied to individual components ranged from $13 million to $102 million.
Rationale for the The pre-tax profits for the 2018-2020 years have been adjusted in determining materiality to exclude items
benchmark applied 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. These ‘adjusting items’ are outlined in
notes 5 and 6 to the financial statements and include impairments for example. If included, these would distort
materiality year-on-year.
We consider using a 3-year average to be more appropriate than an assessment based on current year results
alone given the nature of the mining industry which is exposed to cyclical commodity price fluctuations. Using
a 3-year average provides a more appropriate base reflective of the scale of the Group’s size and operations
through the cycle.
We agreed with the Audit Committee that we would report all audit differences in excess of $9 million (2019: $12 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.
AN OVERVIEW OF THE SCOPE OF OUR AUDIT

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 and Adjusted EBITDA), 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

38 components (2019: 42 components), representing the Group’s most material marketing operations and industrial assets, and
utilised 22 component audit teams (2019: 25 component audit teams) in 16 countries (2019: 18 countries).
• 19 components (2019: 24 components) were subject to a full scope audit, and
• 19 components (2019: 18 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 38 components account for 80% of the Group’s net assets (2019: 83%), 88% of the Group’s revenue (2019: 89%) and 91% of the
Group’s Adjusted EBITDA (2019: 87%).
Net assets (%) Revenue (%) Adjusted EBITDA (%)
12 9
20
16
64 Coverage
● Full audit scope
88 91 ● Specified audit procedures
● Review and analytical procedures
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, 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), attendance during
component audit closing conference calls and regular interaction with the component teams during the year.
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.
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.
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 engagement team. Other IT systems were evaluated by component IT specialists to determine whether these IT
systems could be relied upon to support our audit. 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.
As described in the “Impairment of non-current assets” key audit matter above, in the course of auditing the various impairments
during the year, certain modelling errors were identified. These constituted control deficiencies and were subsequently corrected by
management.
The Audit Committee has discussed these internal control deficiencies, and management’s actions to remediate them on pages 97-98.
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.
OTHER INFORMATION
The other information comprises the information included in the annual report other than the We have nothing to report in this
financial statements and our auditor’s report thereon. The directors are responsible for the other regard.
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.

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.
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.
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.
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 directors’ 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 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:
• Matters arising from the ongoing government investigations which could highlight control weaknesses in management’s processes;
• Key sources of estimation uncertainty within management’s testing of impairment of non-current assets within the scope of IAS 36;
• Key sources of estimation uncertainty in management’s recognition and measurement of deferred tax assets and uncertain tax
provisions, and
• Revenue transactions in the Marketing segment that occur close to period end and have a significant gross margin impact
which contain complex terms and / or may be reversed subsequent to period end.
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.

Audit response to risks identified

As a result of performing the above, we identified “Government investigations”, “Impairments of non-current assets”, “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 compliance policies, procedures and controls, including the Group’s procedures to
mitigate the risk of and response to allegations of fraud, bribery and corruption;
• obtaining an understanding of the Group’s business relationships with agents and intermediaries in certain high risk jurisdictions and
rationale for appointment;
• scrutinising expense accounts for evidence of improper payments in high risk jurisdictions;
• enhancing our 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 perform detailed audit procedures on business transactions with high risk individuals
and companies;
• 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 significant 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
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.
Corporate Governance Statement

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 114;
• 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 pages 72-73;
• the directors’ statement on fair, balanced and understandable set out on page 115;
• the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 72;
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on
pages 70-84, and
• the section describing the work of the audit committee set out on pages 97-98.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
Adequacy of explanations received and accounting records We have nothing to report in this
Under the Companies (Jersey) Law, 1991 we are required to report to you if, in our opinion: regard.
• 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.

OTHER MATTERS WHICH WE ARE REQUIRED TO ADDRESS
Auditor tenure
Following the recommendation of the Audit Committee, we were 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. The period of total
uninterrupted engagement including previous renewals and reappointments of the firm as auditor of Glencore plc is 10 years, covering
the years ending December 2011 to December 2020. The Engagement Partner has rotated twice during this period, with the most
recent rotation being after the 2017 audit.
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).
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.
Geoffrey Pinnock, CA (SA)

for and on behalf of Deloitte LLP
Recognised Auditor
London, UK
10 March 2021

CONSOLIDATED STATEMENT
OF INCOME
FOR
FOR THE
THE YEAR
YEAR ENDED
ENDED 31
31 DECEMBER
DECEMBER 2020
2020
US$
US$ million
million Notes
Notes 2020
2020 2019
2019
Revenue
Revenue 3
3 142,338
142,338 215,111
215,111
Cost of
Cost of goods
goods sold
sold (138,640)
(138,640) (210,434)
(210,434)
Selling
Selling and
and administrative
administrative expenses
expenses (1,681)
(1,681) (1,391)
(1,391)
Share
Share of
of income
income from
from associates
associates and
and joint
joint ventures
ventures 10
10 444
444 114
114
Loss on
Loss on disposals
disposals of
of non-current
non-current assets
assets 4
4 (36)
(36) (43)
(43)
Other
Other income
income 5
5 438
438 372
372
Other
Other expense
expense 5
5 (611)
(611) (545)
(545)
Impairments
Impairments of of non-current
non-current assets
assets 6
6 (5,715)
(5,715) (2,322)
(2,322)
Impairments
Impairments of financial
of financial assets
assets 6
6 (232)
(232) (86)
(86)
Dividend income
Dividend income 10
10 32
32 49
49
Interest
Interest income
income 120
120 227
227
Interest
Interest expense
expense (1,573)
(1,573) (1,940)
(1,940)
Loss before
Loss before income
income taxes
taxes (5,116)
(5,116) (888)
(888)
Income
Income taxtax credit/(expense)
credit/(expense) 7
7 1,170
1,170 (618)
(618)
Loss
Loss for
for the
the year
year (3,946)
(3,946) (1,506)
(1,506)
Attributable
Attributable to:
to:
Non-controlling
Non-controlling interests
interests (2,043)
(2,043) (1,102)
(1,102)
Equity holders
Equity holders of
of the
the Parent
Parent (1,903)
(1,903) (404)
(404)
Loss
Loss per
per share:
share:
Basic (US$)
Basic (US$) 17
17 (0.14)
(0.14) (0.03)
(0.03)
Diluted
Diluted (US$)
(US$) 17
17 (0.14)
(0.14) (0.03)
(0.03)
The
The accompanying
accompanying notes
notes are
are an
an integral
integral part
part of
of the
the consolidated
consolidated financial
statements.

Glencore
Glencore Annual
Annual Report
Report 2020
2020 11
OF COMPREHENSIVE INCOME
FOR
FOR THE
THE YEAR
YEAR ENDED
ENDED 31
31 DECEMBER
DECEMBER 2020
2020
US$
US$ million
million Notes
Notes 2020
2020 2019
2019
Loss
Loss for
for the
the year
year (3,946)
(3,946) (1,506)
(1,506)
Other
Other comprehensive
comprehensive (loss)/income
(loss)/income
Items not
Items not to
to be
be reclassified
reclassified to
to the
the statement
statement of of income
income in in subsequent
subsequent periods:
periods:
Defined
Defined benefit
benefit plan
plan remeasurements,
remeasurements, net net of
of tax
tax of
of $3
$3 million
million (2019:
(2019: $19
$19 million)
million) 23
23 (17)
(17) (80)
(80)
(Loss)/gain
(Loss)/gain onon equity
equity investments
investments accounted
accounted for for at
at fair
fair value
value through
through other
other comprehensive
comprehensive
income,
income, netnet of
of tax
tax of
of $1
$1 million
million (2019:
(2019: $11
$11 million)
million) 10
10 (630)
(630) 337
337
Gain/(loss)
Gain/(loss) due
due to to changes
changes in in credit
credit risk
risk on
on financial
financial liabilities
liabilities accounted
accounted forfor at
at fair
fair value
value 19
19 (1)
(1)
through profit
through profit and
and loss
loss
Net
Net items
items not
not toto be
be reclassified
reclassified to to the
the statement
income in in subsequent
subsequent periods
periods (628)
(628) 256
256
Items that have been or may be reclassified to the statement
Items that have been or may be reclassified to the statement of income of income
in
in subsequent
subsequent periods:
periods:
Exchange
Exchange (loss)/gain
(loss)/gain onon translation
translation of of foreign
foreign operations
operations (189)
(189) 117
117
Losses on
Losses on cash
cash flow
flow hedges,
hedges, net
net ofof tax
tax of
of $4
$4 million
million (2019:
(2019: $4$4 million)
million) (42)
(42) (51)
(51)
Cash
Cash flow
flow hedges
hedges reclassifed
reclassifed to
to the
the statement
income (12)
(12) ––
Share of
Share of other
other comprehensive
comprehensive loss loss from
from associates
associates andand joint
joint ventures
ventures 10
10 (14)
(14) (37)
(37)
Net
Net items
items that
that have
have been
been oror may
may be be reclassified
reclassified to to the
the statement
income
in subsequent periods
in subsequent periods (257)
(257) 29
29
Other comprehensive
Other comprehensive (loss)/income
(loss)/income (885)
(885) 285
285
Total
Total comprehensive
comprehensive loss loss (4,831)
(4,831) (1,221)
(1,221)
Attributable
Attributable to:
to:
Non-controlling
interests (2,067)
(2,067) (1,103)
(1,103)
Equity
Equity holders
holders of
of the
the Parent
Parent (2,764)
(2,764) (118)
(118)
The
The accompanying
accompanying notes
notes are
are an
an integral
integral part
part of
of the
the consolidated
statements.

Glencore
Glencore Annual
Annual Report
Report 2020
2020 2
2
OF FINANCIAL POSITION
AS
AS AT
AT 31
31 DECEMBER
DECEMBER 2020
2020
2019
2019 2018
2018
US$ Notes 2020 (Restated)11 (Restated)11
US$ million
million Notes 2020 (Restated) (Restated)
Assets
Assets
Non-current
Non-current assets
assets
Property,
Property, plant
plant and
and equipment
equipment 8
8 47,110
47,110 55,357
55,357 56,770
56,770
Intangible
Intangible assets
assets 9
9 6,467
6,467 7,006
7,006 6,971
6,971
Investments
Investments inin associates
associates and
and joint
joint ventures
ventures 10
10 12,400
12,400 12,984
12,984 13,909
13,909
Other investments
Other investments 10
10 1,733
1,733 2,387
2,387 2,067
2,067
Advances
Advances and
and loans
loans 11
11 3,042
3,042 2,427
2,427 2,555
2,555
Other
Other financial assets
financial assets 27
27 1,106
1,106 453
453 303
303
Inventories
Inventories 12
12 678
678 575
575 353
353
Deferred
Deferred tax
tax assets
assets 7
7 2,252
2,252 1,477
1,477 1,728
1,728
74,788
74,788 82,666
82,666 84,656
84,656
Current
Current assets
assets
Inventories
Inventories 12
12 22,852
22,852 19,936
19,936 20,564
20,564
Accounts
Accounts receivable
receivable 13
13 15,154
15,154 16,671
16,671 17,666
17,666
Other
Other financial
financial assets
assets 27
27 1,998
1,998 1,953
1,953 3,230
3,230
Income
Income tax
tax receivable
receivable 7
7 444
444 350
350 121
121
Prepaid expenses
Prepaid expenses 220
220 315
315 389
389
Cash
Cash and
and cash
cash equivalents
equivalents 14
14 1,498
1,498 1,899
1,899 2,046
2,046
42,166
42,166 41,124
41,124 44,016
44,016
Assets
Assets held
held for
for sale
sale 15
15 1,046
1,046 286
286 ––
43,212
43,212 41,410
41,410 44,016
44,016
Total
Total assets
assets 118,000
118,000 124,076
124,076 128,672
128,672
Equity
Equity and
and liabilities
liabilities
Capital
Capital and
and reserves
reserves –– attributable
attributable to
to equity
equity holders
holders
Share capital
Share capital 16
16 146
146 146
146 146
146
Reserves
Reserves and
and retained
retained earnings
earnings 37,491
37,491 40,128
40,128 45,592
45,592
37,637
37,637 40,274
40,274 45,738
45,738
Non-controlling
interests 33
33 (3,235)
(3,235) (1,038)
(1,038) (355)
(355)
Total
Total equity
equity 34,402
34,402 39,236
39,236 45,383
45,383
Non-current
Non-current liabilities
liabilities
Borrowings
Borrowings 20
20 29,227
29,227 29,067
29,067 26,424
26,424
Deferred
Deferred income
income 21
21 2,590
2,590 2,670
2,670 2,301
2,301
Deferred tax
Deferred tax liabilities
liabilities 7
7 4,721
4,721 6,094
6,094 6,839
6,839
Other
Other financial
liabilities 27
27 688
688 1,229
1,229 1,620
1,620
Provisions including
Provisions including post-retirement
post-retirement benefits
benefits 22
22 6,931
6,931 6,772
6,772 6,824
6,824
44,157
44,157 45,832
45,832 44,008
44,008
Current
Current liabilities
liabilities
Borrowings
Borrowings 20
20 8,252
8,252 7,976
7,976 8,570
8,570
Accounts
Accounts payable
payable 24
24 24,038
24,038 26,193
26,193 26,484
26,484
Deferred
Deferred income
income 21
21 1,070
1,070 558
558 412
412
Provisions
Provisions 22
22 693
693 489
489 554
554
Other
Other financial
liabilities 27
27 4,276
4,276 2,872
2,872 2,152
2,152
Income
Income tax
tax payable
payable 7
7 927
927 764
764 1,109
1,109
39,256
39,256 38,852
38,852 39,281
39,281
Liabilities
Liabilities held
held for
for sale
sale 15
15 185
185 156
156 ––
39,441
39,441 39,008
39,008 39,281
39,281
Total
Total equity
equity and
and liabilities
liabilities 118,000
118,000 124,076
124,076 128,672
128,672
11 Certain
Certain balances
balances have
have been
been represented
represented to
to conform
conform with
with current
current year
year presentation
presentation (see
(see notes
notes 7,
7, 22
22 and
and 27).
27).
The
The accompanying
accompanying notes
notes are
are an
an integral
integral part
part of
of the
the consolidated
statements.

Glencore
Glencore Annual
Annual Report
Report 2020
2020 3
3
OF CASH FLOWS
FOR
FOR THE
THE YEAR
YEAR ENDED
ENDED 31
31 DECEMBER
DECEMBER 2020
2020
US$
US$ million
million Notes
Notes 2020
2020 2019
2019
Operating
Operating activities
activities
Loss
Loss before
before income
income taxestaxes (5,116)
(5,116) (888)
(888)
Adjustments
Adjustments for: for:
Depreciation
Depreciation and and amortisation
amortisation 6,671
6,671 7,160
7,160
Share of
Share of income
income from from associates
associates and
and joint
joint ventures
ventures 10
10 (444)
(444) (114)
(114)
Streaming
Streaming revenue
revenue and and other
other non-current
non-current provisions
provisions (205)
(205) (296)
(296)
Loss on
Loss on disposals
disposals of of non-current
non-current assets
assets 4
4 36
36 43
43
Unrealised
Unrealised mark-to-market
mark-to-market movementsmovements on on other
other investments
investments 5
5 (59)
(59) (47)
(47)
Impairments
Impairments 6
6 5,947
5,947 2,408
2,408
Other
Other non-cash
non-cash itemsitems –– net
net1
1 285
285 367
367
Interest expense
Interest expense – net– net 1,453
1,453 1,713
1,713
Cash generated
Cash generated by by operating
operating activities
activities before
before working
working capital
capital changes
changes 8,568
8,568 10,346
10,346
Working
Working capital
capital changes
changes
(Increase)/decrease
(Increase)/decrease in in accounts
accounts receivable
receivable2
2 (385)
(385) 1,211
1,211
(Increase)/decrease in
(Increase)/decrease in inventories
inventories (3,189)
(3,189) 678
678
(Decrease)/increase
(Decrease)/increase in in accounts
accounts payable
payable3
3 (436)
(436) 199
199
Total working
Total working capital
capital changes
changes (4,010)
(4,010) 2,088
2,088
Income
Income taxes
taxes paid
paid (820)
(820) (2,301)
(2,301)
Interest
Interest received
received 100
100 200
200
Interest paid
Interest paid (1,174)
(1,174) (1,604)
(1,604)
Net
Net cash
cash generated
generated by by operating
operating activities
activities 2,664
2,664 8,729
8,729
Investing activities
Investing activities
Net cash
Net cash used
used in in acquisition
acquisition of of subsidiaries
subsidiaries 25
25 –– (123)
(123)
Net
Net cash
cash (used
(used in)/received
in)/received fromfrom disposal
disposal of
of subsidiaries
subsidiaries 25
25 (222)
(222) 5
5
Purchase of
Purchase of investments
investments (122)
(122) (125)
(125)
Proceeds
Proceeds from
from sale
sale of
of investments
investments 135
135 119
119
Purchase
Purchase of property, plant
of property, plant and
and equipment
equipment (3,569)
(3,569) (4,712)
(4,712)
Proceeds from
Proceeds from sale
sale of
of property,
property, plant
plant and
and equipment
equipment 52
52 178
178
Dividends
Dividends received
received fromfrom associates
associates and
and joint
joint ventures
ventures 10
10 1,015
1,015 942
942
Net cash
Net cash used
used by by investing
investing activities
activities (2,711)
(2,711) (3,716)
(3,716)
11 Includes
Includes certain
certain non-cash
non-cash items
items as
as disclosed
disclosed inin note
note 5,
5, share
share based
based remuneration
remuneration of
of $184
$184 million
million (2019:
(2019: $190
$190 million)
million) and
and inventory
inventory net
net realisable
realisable value
value adjustment
adjustment of
of negative
negative
$37 million
$37 million (2019:
(2019: $184
$184 million).
million).
2
2 Includes
Includes movements
movements in in other
other financial
financial assets,
assets, prepaid
prepaid expenses
expenses and
and long-term
long-term advances
advances and
and loans.
loans.
3
3 Includes
Includes movements
movements in in other
other financial
financial liabilities,
liabilities, provisions
provisions and
and deferred
deferred income.
income.
The
The accompanying
accompanying notes
notes are
are an
an integral
integral part
part of
of the
the consolidated
statements.
Glencore Annual Report 2020

Glencore AnnualAnnual
Report 2020 4
4
134 Glencore Report 2020
OF CASH FLOWS
FOR
FOR THE
THE YEAR
YEAR ENDED
ENDED 31
31 DECEMBER
DECEMBER 2020
2020
US$
US$ million
million Notes
Notes 2020
2020 2019
2019
Financing
Financing activities
activities1
1
Proceeds
Proceeds from issuance of
from issuance of capital
capital market
market notes
notes2
2
3,362
3,362 3,866
3,866
Repayment of capital market
Repayment of capital market notes notes (4,017)
(4,017) (3,167)
(3,167)
Repurchase of
Repurchase of capital
capital market
market notes
notes (72)
(72) ––
Repayment
Repayment of of revolving
revolving credit
credit facility
facility (870)
(870) (29)
(29)
Proceeds
Proceeds from
from other
other non-current
non-current borrowings
borrowings 392
392 291
291
Repayment
Repayment of of other
other non-current
non-current borrowings
borrowings (44)
(44) (325)
(325)
Repayment
Repayment of of lease
lease liabilities
liabilities (560)
(560) (358)
(358)
Margin receipts
Margin receipts in in respect
respect of of financing
financing related
related hedging
hedging activities
activities 1,040
1,040 529
529
Proceeds
Proceeds from/(repayment
from/(repayment of) of) current
current borrowings
borrowings 217
217 (682)
(682)
Proceeds from
Proceeds from U.S.
U.S. commercial
commercial papers papers 415
415 79
79
Acquisition
Acquisition ofof non-controlling
non-controlling interests
interests in in subsidiaries
subsidiaries (56)
(56) (24)
(24)
Return
Return of capital/distributions to non-controlling interests
of capital/distributions to non-controlling interests (127)
(127) (305)
(305)
Purchase
Purchase ofof own
own shares
shares 16
16 –– (2,318)
(2,318)
Disposal
Disposal of
of own
own shares
shares –– 6
6
Distributions paid
Distributions paid toto equity
equity holders
holders of of the
the Parent
Parent 18
18 –– (2,710)
(2,710)
Net
Net cash
cash used
used by by financing
financing activities
activities (320)
(320) (5,147)
(5,147)
Decrease
Decrease inin cash
cash andand cash
cash equivalents
equivalents (367)
(367) (134)
(134)
Effect of
Effect of foreign
foreign exchange
exchange raterate changes
changes (36)
(36) (11)
(11)
Cash
Cash and
and cash
cash equivalents,
equivalents, beginning
beginning of of year
year 1,901
1,901 2,046
2,046
Cash and
Cash and cash
cash equivalents,
equivalents, end end of of year
year 1,498
1,498 1,901
1,901
Cash and
Cash and cash
cash equivalents
equivalents reported
reported in in the
the statement
statement ofof financial
financial position
position 1,498
1,498 1,899
1,899
Cash
Cash and
and cash
cash equivalents
equivalents attributable
attributable to to assets
assets held
held for
for sale
sale –– 2
2
11 Refer
Refer to
to note
note 20
20 for
for reconciliation
reconciliation of
of movement
movement in in borrowings.
borrowings.
2
2 Net
Net of
of issuance
issuance costs
costs relating
relating to
to capital
capital market
market notes
notes of
of $20
$20 million
million (2019:
(2019: $25
$25 million).
million).
The
The accompanying
accompanying notes
notes are
are an
an integral
integral part
part of
of the
the consolidated
statements.

OF CHANGES OF EQUITY
FOR
FOR THE
THE YEAR
YEAR ENDED
ENDED 31
31 DECEMBER
DECEMBER 2020
2020
Total
Total
reserves
reserves Total
Total equity
equity Non-
Non-
Other
Other Own
Own and
and attributable controlling
attributable controlling
Retained
Retained Share
Share reserves
reserves shares
shares retained
retained Share
Share to equity
to equity interests
interests Total
Total
earnings
earnings premium
premium (Note
(Note 16)
16) (Note
(Note 16)
16) earnings
earnings capital
capital holders
holders (Note
(Note 33)
33) equity
equity
11 January
January 2019
2019 5,343
5,343 48,504
48,504 (4,937)
(4,937) (3,318)
(3,318) 45,592
45,592 146
146 45,738
45,738 (355)
(355) 45,383
45,383
Loss for
Loss for the
the year
year (404)
(404) –– –– –– (404)
(404) –– (404)
(404) (1,102)
(1,102) (1,506)
(1,506)
Other
Other comprehensive
comprehensive (118)
(118) –– 404
404 –– 286
286 –– 286
286 (1)
(1) 285
285
(loss)/income
(loss)/income
Total
Total comprehensive
comprehensive loss loss (522)
(522) –– 404
404 –– (118)
(118) –– (118)
(118) (1,103)
(1,103) (1,221)
(1,221)
Own
Own share disposal
share disposal1
1
(115)
(115) –– –– 199
199 84
84 –– 84
84 –– 84
84
Own
Own share
share purchases
purchases1
1
–– –– –– (2,318)
(2,318) (2,318)
(2,318) –– (2,318)
(2,318) –– (2,318)
(2,318)
Equity-settled share-based
expenses
expenses2
2
12
12 –– –– –– 12
12 –– 12
12 –– 12
12
Change in
Change in ownership
ownership interest
interest
in
in subsidiaries
subsidiaries3
3
–– –– (418)
(418) –– (418)
(418) –– (418)
(418) 358
358 (60)
(60)
Acquisition/disposal of
Acquisition/disposal of business
business44 –– –– –– –– –– –– –– 371
371 371
371
Reclassifications
Reclassifications 24
24 –– (20)
(20) –– 4
4 –– 4
4 (4)
(4) ––
Distributions
Distributions paid
paid5
5 –– (2,710)
(2,710) –– –– (2,710)
(2,710) –– (2,710)
(2,710) (305)
(305) (3,015)
(3,015)
31 December
31 December 2019 2019 4,742
4,742 45,794
45,794 (4,971)
(4,971) (5,437)
(5,437) 40,128
40,128 146
146 40,274
40,274 (1,038)
(1,038) 39,236
39,236
11 January
January 2020
2020 4,742
4,742 45,794
45,794 (4,971)
(4,971) (5,437)
(5,437) 40,128
40,128 146
146 40,274
40,274 (1,038)
(1,038) 39,236
39,236
Loss
Loss for
for the
the year
year (1,903)
(1,903) –– –– –– (1,903)
(1,903) –– (1,903)
(1,903) (2,043)
(2,043) (3,946)
(3,946)
Other comprehensive
Other comprehensive loss
loss (32)
(32) –– (829)
(829) –– (861)
(861) –– (861)
(861) (24)
(24) (885)
(885)
Total
Total comprehensive
comprehensive loss
loss (1,935)
(1,935) –– (829)
(829) –– (2,764)
(2,764) –– (2,764)
(2,764) (2,067)
(2,067) (4,831)
(4,831)
Own
Own share
share disposal
disposal1
1 (32)
(32) –– –– 133
133 101
101 –– 101
101 –– 101
101
expenses
expenses2
2 57
57 –– –– –– 57
57 –– 57
57 –– 57
57
Change
Change in ownership
in ownership interest
interest
in subsidiaries
in subsidiaries33 –– –– (31)
(31) –– (31)
(31) –– (31)
(31) (3)
(3) (34)
(34)
Reclassifications
Reclassifications 17
17 –– (17)
(17) –– –– –– –– –– ––
Distributions paid
Distributions paid55 –– –– –– –– –– –– –– (127)
(127) (127)
(127)
31
31 December 2020
December 2020 2,849
2,849 45,794
45,794 (5,848)
(5,848) (5,304)
(5,304) 37,491
37,491 146
146 37,637
37,637 (3,235)
(3,235) 34,402
34,402
11 See
See note
note 16.
16.
2
2 See note
See note 19.
19.
3
3 See
See note
note 33.
33.
4
4 See
See note
note 25.
25.
5
5 See
See note 18.
note 18.
The
The accompanying
accompanying notes
notes are
are an
an integral
integral part
part of
of the
the consolidated
statements.

Glencore
Glencore Annual
Annual Report
Report 2020
2020 6
6
NOTES TO THE
FINANCIAL STATEMENTS
1.1.Accounting
Accountingpolicies
policies
CORPORATE
CORPORATEINFORMATION
INFORMATION
Glencore
Glencoreplc
plc(the
(the“Company”,
“Company”,“Parent”,
“Parent”,thethe“Group”
“Group”oror“Glencore”),
“Glencore”),isisaaleading
leadingintegrated
integratedproducer
producerand
andmarketer
marketerof ofnatural
natural
resources,
resources,with
withworldwide
worldwideactivities
activitiesininthe
theproduction,
production,refinement,
refinement,processing,
processing,storage,
storage,transport
transportand
andmarketing
marketingof ofmetals
metalsand
and
minerals
mineralsand
andenergy
energyproducts.
products.Glencore
Glencoreoperates
operatesononaaglobal
globalscale,
scale,marketing
marketingand anddistributing
distributingphysical
physicalcommodities
commoditiessourced
sourced
from
fromthird
thirdparty
partyproducers
producersandandownownproduction
productionto toindustrial
industrialconsumers,
consumers,such suchasasthose
thosein
inthe
thebattery,
battery,electronic,
electronic,construction,
construction,
automotive,
automotive,steel,
steel,energy
energyand
andoiloilindustries.
industries.Glencore
Glencorealso
alsoprovides
providesfinancing,
financing,logistics
logisticsand
andother
otherservices
servicesto
toproducers
producersandand
consumers
consumersof ofcommodities.
commodities.In Inthis
thisregard,
regard,Glencore
Glencoreseeks
seeksto tocapture
capturevalue
valuethroughout
throughoutthe thecommodity
commoditysupply
supplychain.
chain.Glencore’s
Glencore’s
long
longexperience
experienceas asaacommodity
commodityproducerproducerand andmerchant
merchanthas hasallowed
alloweditittotodevelop
developand
andbuild
buildupon
uponits
itsexpertise
expertiseininthe
thecommodities
commodities
which
whichititmarkets
marketsandandcultivate
cultivatelong-term
long-termrelationships
relationshipswith
withaabroad
broadsupplier
supplierand
andcustomer
customerbase
baseacross
acrossdiverse
diverseindustries
industriesand
andinin
multiple
multiplegeographic
geographicregions.
regions.
Glencore
Glencoreisisaapublicly
publiclytraded
tradedlimited
limitedcompany
companyincorporated
incorporatedin
inJersey
Jerseyand
anddomiciled
domiciledin
inSwitzerland.
Switzerland.Its
Itsordinary
ordinaryshares
sharesare
aretraded
traded
on
onthe
theLondon
LondonandandJohannesburg
Johannesburgstock
stockexchanges.
exchanges.
These
Theseconsolidated
consolidatedfinancial
financialstatements
statementswere
wereauthorised
authorisedfor
forissue
issuein
inaccordance
accordancewith
withthe
theDirectors’
Directors’resolution
resolutionon
on10
10March
March2021.
2021.
STATEMENT
STATEMENTOF
OFCOMPLIANCE
COMPLIANCE
The
Theconsolidated
financialstatements
statementshave
havebeen
beenprepared
preparedin
inaccordance
accordancewith:
with:
•• International
InternationalFinancial
FinancialReporting
ReportingStandards
Standards(IFRS)
(IFRS)adopted
adoptedpursuant
pursuantto
toRegulation
Regulation(EC)
(EC)No
No1606/2002
1606/2002as
asititapplies
appliesin
inthe
the
European Union, and
European Union, and
•• IFRS
IFRSas
asissued
issuedby
bythe
theInternational
InternationalAccounting
AccountingStandards
StandardsBoard
Board(IASB).
(IASB).
CLIMATE
CLIMATECHANGE
CHANGERELATED
RELATEDCONSIDERATIONS
CONSIDERATIONS
The
TheGroup’s
Group’sambition
ambitionononclimate
climatechange
changeisisto
toachieve
achievenet
netzero
zerototal
totalemissions
emissionsbyby2050.
2050.TheTheaccounting
accountingrelated
relatedmeasurement
measurementand and
disclosure
disclosureareas
areasmost
mostimpacted
impactedby bythis
thisposition
positionrelate
relateto
tothe
thecarrying
carryingvalue
valueof
ofour
ourcoal
coalindustrial
industrialassets
assetswhere
wherethetheunderlying
underlying
accounting
accountingdetermination
determinationisissubject
subjectto toestimation
estimationuncertainties
uncertaintiesin inthe
themedium
mediumto tolong
longterm
termsuch
suchas:
as:impairments
impairmentsandandimpairment
impairment
reversals
reversalsand
anduseful
usefuleconomic
economiclives
livesof
ofassets.
assets.The
Thepolicies
policiesand
andwhere
whereapplicable,
applicable,key
keyestimates
estimatesand
andsensitivities
sensitivitiespertaining
pertainingto
to
reasonably
reasonablypossible
possiblechanges
changesin inestimates,
estimates,most
mostimpacted
impactedby byclimate
climatechange
changeare
arecovered
coveredbelow.
below.
CRITICAL
CRITICALACCOUNTING
ACCOUNTINGJUDGEMENTS
JUDGEMENTSAND
ANDKEY
KEYSOURCES
SOURCESOF
OFESTIMATION
ESTIMATIONUNCERTAINTY
UNCERTAINTY
The
Thepreparation
preparationof ofthe
theconsolidated
financialstatements
statementsrequires
requiresmanagement
managementto tomake
makejudgements,
judgements,estimates
estimatesand andassumptions
assumptions
that
thataffect
affectthe
thereported
reportedamounts
amountsof ofassets
assetsand
andliabilities
liabilitiesas
aswell
wellas
asthe
thedisclosure
disclosureof
ofcontingent
contingentassets
assetsand
andliabilities
liabilitiesat
atthe
thedate
dateof
ofthe
the
financial
financialstatements
statementsandandthe
thereported
reportedamounts
amountsof ofrevenues
revenuesand
andexpenses
expensesduring
duringthe
thereporting
reportingperiod.
period.Estimates
Estimatesand andassumptions
assumptions
are
arecontinually
continuallyevaluated
evaluatedand
andare
arebased
basedononhistorical
historicalexperience
experienceand
andother
otherfactors,
factors,including
includingexpectations
expectationsofoffuture
futureevents
eventsthat
thatare
are
believed
believedto tobe
bereasonable
reasonableandandrelevant
relevantunder
underthe
thecircumstances,
circumstances,independent
independentestimates,
estimates,quoted
quotedmarket
marketprices
pricesandandcommon,
common,
industry
industrystandard
standardmodelling
modellingtechniques.
techniques.Actual
Actualoutcomes
outcomescould
couldresult
resultin
inaamaterial
materialadjustment
adjustmenttotothe
thecarrying
carryingamount
amountof ofassets
assets
or
orliabilities
liabilitiesaffected
affectedin
infuture
futureperiods.
periods.
Glencore
Glencorehas
hasidentified
identifiedthe
thefollowing
followingareas
areasas
asbeing
beingcritical
criticalto
tounderstanding
understandingGlencore’s
Glencore’sfinancial
financialposition
positionasasthey
theyrequire
requiremanagement
management
to
to make complex and/or subjective judgements, estimates and assumptions about matters that are inherentlyuncertain:
make complex and/or subjective judgements, estimates and assumptions about matters that are inherently uncertain:
CRITICAL
CRITICALACCOUNTING
ACCOUNTINGJUDGEMENTS
JUDGEMENTS
In
Inthe
theprocess
processof
ofapplying
applyingGlencore’s
Glencore’saccounting
accountingpolicies,
policies,management
managementhas hasmade
madethethefollowing
followingjudgements
judgementsbased
basedononthe
therelevant
relevant
facts and circumstances including macro-economic circumstances and, where applicable, interpretation of underlying agreements,
facts and circumstances including macro-economic circumstances and, where applicable, interpretation of underlying agreements,
which
whichhave
havethe
themost
mostsignificant
significanteffect
effecton
onthe
theamounts
amountsrecognised
recognisedin
inthe
theconsolidated
financialstatements.
statements.
(i)
(i)Determination
Determinationof
ofcontrol
controlof
ofsubsidiaries
subsidiariesand
andjoint
jointarrangements
arrangements(see
(seenote
note34)
34)
Judgement
Judgementisisrequired
requiredto
todetermine
determinewhen
whenGlencore
Glencorehashascontrol
controlofofsubsidiaries
subsidiariesor
orjoint
jointcontrol
controlof
ofjoint
jointor
orother
otherunincorporated
unincorporated
arrangements.
arrangements.This Thisrequires
requiresan
anassessment
assessmentof ofthe
therelevant
relevantactivities
activities(those
(thoserelating
relatingtotothe
theoperating
operatingandandcapital
capitaldecisions
decisionsofof
the arrangement, such as: the approval of the capital expenditure programme for each year, and appointing,
the arrangement, such as: the approval of the capital expenditure programme for each year, and appointing, remunerating remunerating
and
andterminating
terminatingthe thekey
keymanagement
managementpersonnel
personnelor orservice
serviceproviders
providersof ofthe
theoperations)
operations)andandwhen
whenthethedecisions
decisionsininrelation
relationto
to
those activities are under the control of Glencore or require unanimous consent. See note 25 for a summary of the
those activities are under the control of Glencore or require unanimous consent. See note 25 for a summary of the acquisitions acquisitions
of
ofsubsidiaries
subsidiariescompleted
completedduring
during2020
2020and
and2019
2019and
andthe
thekey
keyjudgements
judgementsmade madein indetermining
determiningcontrol
controlthereof.
thereof.
Glencore
GlencoreAnnual
AnnualReport
Report2020
2020 77
NOTES TO THE FINANCIAL STATEMENTS
continued
1. Accounting policies continued
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 (formerly Glencore Agri)
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 10 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 20, 21 and 24)
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 120 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 flow with a corresponding
trade payable in the statement of financial position. As at 31 December 2020, trade payables include $7,178 million (2019:
$5,687 million) of such liabilities arising from supplier financing arrangements, the weighted average of which have extended the
settlement of the original payable to 91 days (2019: 86 days) after physical supply and are due for settlement 46 days (2019: 38 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) Critical judgement related to investigations by regulatory and enforcement authorities (note 31)


continued
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 7)
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 7. 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 (notes 6 and 10)
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 were identified for various CGUs, primarily
due to a deterioration in the underlying commodity price environment most influencing the respective operation. Accordingly, the
Group assessed the recoverable amounts of these CGUs and as at 31 December 2020, except for those CGUs disclosed in notes 6
and 10, the estimated recoverable amounts exceeded the carrying values. However, for certain CGUs where no impairment was
recognised, should there be a significant deterioration in the key assumptions, a material impairment 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 below.
In providing sensitivity analysis (and particularly on commodity price assumptions), a 10% change, representing a typical deviation
parameter common in the industry, has in some cases been provided. Where a higher or lower percentage is reasonably possible
on an operational assumption, this has been clearly identified.

continued
Sensitivity to demand for fossil fuels

The impairment assessment assumes that through the remaining life of mine, there will continue to be a ready market for thermal
coal at a Newcastle FOB export price of $80/tonne (6,000 NAR), South African FOB export price of $80/tonne and Colombian CIF
price (destination: Rotterdam) of $65/tonne. The International Energy Agency (IEA) provides a comprehensive view of how the global
energy system could develop in the coming decades through a number of scenarios. Our base case production decline profile is
consistent with the demand decline profile of the IEA’s Paris-aligned scenarios. Should coal be displaced as a fuel for power
generation more rapidly than currently expected, the resulting supply overhang could result in lower commodity prices. We have
illustrated this by showing the various impairment scenarios versus current carrying values at possible commodity price curves
consistent with the IEA’s scenarios:
• Stated Policies scenario (STEPS) – the impact of existing policy frameworks and today’s announced policy intentions (consistent
with our “Current Pathway” scenario)
• Sustainable Development scenario (SDS) – the impact should additional policy mechanisms be implemented sufficient for full
alignment with the Paris Goals (consistent with our “Rapid Transition” scenario)
The sensitivity prices set out below are those included in the documentation to the IEA’s World Energy Model 2020, 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.
The base case price used in the impairment assessment is higher than that in STEPS due to our assumption that such higher price
will be required to induce the required investment to maintain supply levels under this scenario. Notwithstanding this assumption,
we also consider prices in STEPS to be a reasonably possible change in our assumptions within the next financial year. Europe’s
demand for thermal coal has reduced significantly in recent years, and this is currently the key market for Colombian coal.
Accordingly we consider the SDS prices for Colombian coal to be a reasonably possible change in our assumptions within the next
financial year and have sensitised Cerrejon against these. The SDS price sensitivities for Australia and South Africa are provided for
additional information.
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 IEA has also published a net zero emissions by 2050 scenario (consistent with our “Radical Transformation” scenario), but has
not published price assumptions for this scenario. Our assumption is that demand (and therefore price) would be similar to SDS, but
with large-scale uptake of carbon capture, utilisation and storage to mitigate the effects of such. In itself, this reflects that in all
credible energy transformation scenarios, thermal coal will continue to be required as a transition fuel for several decades.
Coking coal prices have not been sensitised, reflecting limited alternatives in relevant industrial applications. We have not sensitised
the NPV of our oil producing assets, reflecting the relatively low capital allocated to such.
Our life of mine planning reflects operating cash flows from Cerrejon until 2032, South African coal mines until 2043 and Australian
coal mines until at least 2050. Production is weighted towards the earlier part of the mines’ lives. We have illustrated this by showing
the year in which 50% of saleable coal would be extracted under the current plan, well within the next decade.
Cash-generating unit
Thermal South Total thermal
US$ million Thermal Australia Africa Cerrejon coal
Base case assumptions in life of mine plan:

– LOM saleable tonnes (Glencore consolidated) (million tonnes) 1,300 380 85
– projected year when 50% LOM tonnage depleted 2028 2028 2026
– long-term price (Newcastle FOB / API4 FOB / API2 CIF) ($/t)
(real terms) 80 80 65
– discount rate applied (ranges represent opencut / underground) 6.1%-6.7% 7.9%-8.5% 7.9%
Short- to long-term prices applied in selected scenarios:

– STEPS 77-74 72-79 63-73
– SDS 67-58 62-63 54-59
Carrying value of non-current capital employed as 31 December 2020 8,565 2,804 595 11,964
Illustrative impairment arising:

– STEPS 1,900 590 – 2,490
– SDS 5,800 1,700 230 7,730


continued
Sensitivity to project execution and ramp-up

Mutanda
The operations have been on care and maintenance since 2019 and have an accumulated impairment of $955 million. The valuation
remains sensitive to price and a prolonged temporary care and maintenance scenario and further deteriorations in these key
assumptions may result in additional impairment. The short to long-term copper and cobalt price assumptions were $6,500-
$6,250/mt and $16.00 – $25.00/lb, respectively. Should the copper and cobalt assumptions fall by 10% (across the curve), or should
it be determined that the temporary care and maintenance scenario be prolonged for an additional 2 years, with all other
assumptions held constant, a further impairment of $357 million or $402 million, respectively, would be recognised. Bringing
the operations back online more rapidly than the profile modelled may result in some or all of the accumulated impairment
being reversed.
Koniambo
The impairment assessment on the Koniambo CGU was prepared on the assumption that Koniambo would reach steady-state
capacity of circa 55ktpy contained nickel by 2028, and continue to produce at this rate until 2060. The assessment is sensitive to
the ramp-up profile to steady-state production, and the assumed modification of Mineral Resources to Ore Reserves, and their
eventual exploitation.
We have illustrated this by showing the effects of:
• limiting Koniambo’s production ramp-up to around 85% of the base case level up to 2038;
• limiting Koniambo’s production to currently defined Ore Reserves (17 years); and
• a 10% change in the long-term nickel price.
Modification of Mineral Resources in place to Ore Reserves available for economic extraction depends on a number of modifying
factors, including mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and
governmental factors. In a long-dated project, a lack of certainty about some of these factors over the timescales involved may
mean that it is not currently appropriate to show the existing Mineral Resource converted to Ore Reserves. This does not mean that
such Mineral Resource is without value.
US$ million Koniambo
Base case assumptions in the life of mine plan:

– LOM saleable tonnes (thousand tonnes) 2,000
– projected annual production by 2028 (approximate) 55Ktpa
– long-term nickel price ($/t) (real terms) 15,322
– discount rate applied 9.3%
Alternative LOM assumptions:

– projected annual production by 2028 (approximate) 45Ktpa
– currently defined ore reserves (thousand tonnes) 870
– change in nickel price 10%
Carrying value of non-current capital employed as 31 December 2020 1,484
Illustrative impairment arising:

– slower production ramp-up 150
– limitation to currently defined ore reserves 540
– 10% change in nickel price 720
Koniambo has previously been impaired. A favourable change in the long-term nickel price, or the quantum and/or timing of
Koniambo’s ramp-up could result in a reversal of impairment.
(iii) Restoration, rehabilitation and decommissioning costs (note 22)
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.

continued
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 12
months could arise from changes in risk-free rates. The aggregate effect of changes within 12 months as a result of revisions to cost
and timing assumptions is not expected to be material.
(iv) Fair value measurements (notes 11, 13, 25, 27 and 28)
In addition to recognising derivative instruments at fair value, as discussed below and for the purpose of measuring impairments as
described above, an assessment of the fair value of assets and liabilities is also required in accounting for other transactions, most
notably, business combinations and marketing inventories and disclosures related to fair values of financial assets and liabilities. In
such instances, fair value measurements are estimated based on the amounts for which the assets and liabilities could be
exchanged at the relevant transaction date or reporting period end, and are therefore not necessarily reflective of the cash flow
upon actual settlements. Where fair value measurements cannot be derived from publicly available information, they are estimated
using models and other valuation methods. To the extent possible, the assumptions and inputs used take into account externally
verifiable inputs. However, such information is by nature subject to uncertainty, particularly where comparable market-based
transactions often do not exist.
Financial instruments are carried at fair value for which Glencore evaluates the quality and reliability of the assumptions and data
used to measure fair value in the three hierarchy levels, Level 1, 2 and 3, as prescribed by IFRS 13 Fair Value Measurement. Fair values
are determined in the following ways: externally verified via comparison to quoted market prices in active markets (Level 1); by using
models with externally verifiable inputs (Level 2); or by using alternative procedures such as comparison to comparable instruments
and/or using models with unobservable market inputs requiring Glencore to make market-based assumptions (Level 3). Level 3
inputs therefore include the highest level of estimation uncertainty.
(v) Retirement benefits (note 23)
The present value and costs of providing pensions and other post-employement benefits are determined on the basis of a number
of assumptions which include future earnings and pension increases, discount rates, long-term expected rates of return on plan
assets, inflation rate and mortality assumptions. Any changes in these assumptions will impact the carrying amount of the pension
and other post-employement benefits and may have a material impact on future results. Key assumptions and sensitivities are
disclosed within note 23.
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 2020, the
material changes being:
(i) Amendments to IFRS 3 – Definition of business
The amendments assist the determination of whether a transaction should be accounted for as a business combination or as an
asset acquisition. To be considered a business, an acquired set of activities and assets must include, at a minimum, an input and
a substantive process that together significantly contribute to the ability to create outputs. IFRS 3 continues to adopt a market
participant’s perspective to determine whether an acquired set of activities and assets is a business, but clarifies the minimum
requirements to be a business and removes the assessment of a market participant’s ability to replace missing elements.
The amendments also introduce an optional concentration test that permits a simplified assessment of whether an acquired set
of activities and assets is not a business – it is not a business if substantially all of the fair value of the gross assets acquired is
concentrated in a single identifiable asset or group of similar identifiable assets.
The amended definitions shall be applicable for any acquisition within the scope of IFRS 3.
(ii) Amendments to IAS 1 and IAS 8 – Definition of material
The amendments clarify the definition of material and how it should be applied by including in the definition guidance that
until now has been featured elsewhere in IFRS Standards, and ensures that the definition of material is consistent across all IFRS
Standards. Information is considered material if omitting, misstating or obscuring it could reasonably be expected to influence the
decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which
provide financial information about a specific reporting entity.
These amendments did not have a material impact on the Group.


continued
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) Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) – effective
for year ends beginning on or after 1 January 2021
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. The Group intends to adopt these amendments in future to ensure continuity of existing hedge relationships.
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
2020 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 facilitites and monitoring of debt maturitites. Further information on Glencore’s
objectives, policies and processes for managing its capital and financial risks are detailed in note 26.
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.

continued
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.


continued
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 2020, the outstanding repurchase commitments under such agreements were
approximately $0.3 billion (2019: $1.4 billion). 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.

continued
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. 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.
RETIREMENT BENEFITS
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.


continued
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 suplus 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.

continued
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.


continued
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;
• 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.

continued
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 straight-line basis as follows:
Port allocation rights 15 years
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. 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.
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.


continued
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 (“marketing inventories”) 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 (“production inventories”) 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.
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) and derivatives are carried at FVTPL.

continued
(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 is 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-months 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.


continued
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.

continued
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 amount represents Group related income and expenses (including share
of Viterra (formerly Glencore Agri) 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.


continued
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.
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
Corporate and other – 5 – 5
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 EBITDA 1,768 7,285 – 9,053
Depreciation and amortisation (101) (3,868) – (3,969)
Proportionate adjustment – depreciation1 – (363) – (363)
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)

Share of significant items – Volcan –
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 credit 1,170
Proportionate adjustment – net finance, impairment and income tax
(1,071)
expense1
Loss for the year (3,946)
1 Refer to APMs section for definition.
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.

25
continued
2019 Marketing Industrial Inter-segment

US$ million activities activities eliminations Total
Revenue
Metals and minerals 73,561 27,672 (16,751) 84,482
Energy products 120,627 15,067 (2,921) 132,773
Revenue – segmental 194,188 42,743 (19,672) 217,259
Proportionate adjustment – revenue1 – (2,148) – (2,148)
Revenue – reported measure 194,188 40,595 (19,672) 215,111
Metals and minerals

Adjusted EBIT 1,089 1,016 – 2,105
Energy products
Adjusted EBIT 1,324 1,274 – 2,598
Corporate and other
Adjusted EBITDA2 (47) (445) – (492)
Depreciation and amortisation – (60) – (60)
Adjusted EBIT (47) (505) – (552)
Total Adjusted EBITDA 2,637 8,964 – 11,601
Total depreciation and amortisation (271) (6,890) – (7,161)
Total depreciation proportionate adjustment – (289) – (289)
Total Adjusted EBIT 2,366 1,785 – 4,151
Share of associates' significant items1,3 (219)

Share of significant items – Volcan (73)
Movement in unrealised inter-segment profit elimination adjustments4 468
Loss on disposals of non-current assets (43)
Other income/(expense) – net (173)
Impairments (2,408)
Interest expense – net (1,713)
Income tax expense (618)
Proportionate adjustment – net finance, impairment and income tax
(878)
expense1
Loss for the year (1,506)
2 Marketing activities include $58 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 Viterra
($73 million), Trevali ($65 million) and Oil vessels’ entities ($62 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.

26

continued
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
2019 Marketing Industrial Corporate

US$ million activities activities and other Total5
Current assets 26,770 12,455 – 39,225
Current liabilities (23,919) (6,957) – (30,876)
Allocatable current capital employed 2,851 5,498 – 8,349
Property, plant and equipment 921 54,436 – 55,357
Intangible assets 5,293 1,713 – 7,006
Investments in associates and other investments 6,202 9,169 – 15,371
Non-current advances and loans 1,511 916 – 2,427
Inventories – 575 – 575
Allocatable non-current capital employed 13,927 66,809 – 80,736
Other assets1 4,115 4,115
Other liabilities2 (53,964) (53,964)
Total net assets 16,778 72,307 (49,849) 39,236
Capital expenditure
Metals and minerals 94 3,963 – 4,057
Energy products 344 1,312 – 1,656
Capital expenditure – segmental 438 5,349 – 5,787
Proportionate adjustment – capital expenditure3 – (419) – (419)
Capital expenditure – reported measure4 438 4,930 – 5,368
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 financial liabilities and liabilities held for sale.
4 Includes $575 million (2019: $656 million), comprising $415 million (2019: $361 million) in Marketing activities and $160 million (2019: $295 million) in Industrial activities, of ‘right-of-use
assets’ capitalised in accordance with IFRS 16 – Leases.
5 Certain balances have been represented to conform with current year presentation (see note 27).

27
continued
GEOGRAPHICAL INFORMATION
Revenue from third parties1
The Americas 25,762 38,114
Europe 42,682 75,749
Asia 60,360 82,988
Africa 6,701 8,214
Oceania 6,833 10,046
142,338 215,111
Non-current assets2
The Americas 17,347 21,702
Europe 11,051 11,048
Asia 4,802 4,669
Africa 13,798 17,548
Oceania 19,657 20,955
66,655 75,922
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 $18,047 million (2019: $19,277 million), in Peru of $7,271 million (2019: $9,923 million) and the DRC of $6,849 (2019: $6,911 million).
3. Revenue

Sale of commodities 139,486 212,244
Freight, storage and other services 2,852 2,867
Total 142,338 215,111
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 $1,217 million (2019: $221 million) of mark-to-market related adjustments on
provisionally priced sales arrangements. Revenue derived from freight, storage and other services is recognised over time as the
service is rendered. Revenue is measured based on consideration specified in the contract with the customer and is presented net
of amounts prepaid as incentives and/or rebates paid to customers, and excludes amounts collected on behalf of third parties. This is
consistent with the revenue information disclosed for each reportable segment (see note 2).
4. Loss on disposals of non-current assets
US$ million Notes 2020 2019

Revaluation of previously held interest in newly acquired business (Polymet) 25 – (38)
Gain on sale of Terminales Portuarios Chancay S.A. 25 – 26
Net gain/(loss) on sale of other investments/operations 9 (8)
Loss on disposal of property, plant and equipment (45) (23)
Total (36) (43)
POLYMET
In June 2019, Glencore concluded the acquisition of an additional 42.9% interest in Polymet Mining Corp. Prior to acquisition,
Glencore owned a 28.8% interest in Polymet which was accounted for as an associate. The revaluation of the existing interest at the
date of acquisition resulted in a reported loss of $38 million (see note 25).
TERMINALES PORTUARIOS CHANCAY S.A.

In April 2019, Glencore disposed of a 60% interest in Terminales Portuarios Chancay S.A. for $11 million, subsequently accounting for
its remaining share of 40% using the equity method (see notes 10 and 25).

28

continued
5. Other income/(expense) – net

Net changes in mark-to-market valuations on investments 438 47
Disposal of Rosneft stake related income – 325
Total other income 438 372
Net foreign exchange losses (192) (70)
Legal related costs (113) (159)
Closed site rehabilitation costs (80) (81)
Closure and severance costs (214) (173)
Acquisition related costs 25 – (6)
Other expenses – net (12) (56)
Total other expenses (611) (545)
Total other income/(expense) – net (173) (173)
Together with foreign exchange movements and mark-to-market movements on investments, other net 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 10), the ARM Coal non-discretionary dividend obligation
(see note 28) and deferred consideration related to Mototolo stake sale in 2018 (see notes 11 and 13), all carried at fair value.
LEGAL RELATED COSTS

Includes various investigations (legal, expert and compliance) related costs of $95 million (2019: $117 million)(see note 31).
In November 2020, claims brought against the Group by the Strategic Fuel Fund Association of South Africa (SFF) asserting that
certain historical purchases of oil from SFF were invalid were settled, with related costs and charges recognised amounting to
$18 million (2019: $42 million).
CLOSED SITE REHABILITATION COSTS

Comprises movements in restoration, rehabilitation and decommissioning estimates related to sites that are no longer operational
(see note 22).
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).
In 2019, closure and severance related costs were incurred at the following operations: Mutanda ($83 million), Katanga ($57 million)
and Brunswick lead smelter ($33 million).
DISPOSAL OF ROSNEFT STAKE RELATED INCOME

In September 2019, a gain of $325 million was recognised in respect of the settlement of a 50:50 consortium with Qatar Investment
Auhority that was established to acquire a stake in OSJC Rosneft Oil, representing the reversal of a provision of the same amount
recorded in 2018.

29
continued
6. Impairments

Property, plant and equipment and intangible assets 8/9 (5,508) (1,954)
Investments 10 (96) (137)
Advances and loans 11/13 (343) (86)
VAT receivables – (162)
Inventory and other – (69)
Total impairments1 (5,947) (2,408)
1 Impairments recognised during the year are allocated to Glencore’s operating segments as follows: Marketing activities $228 million (2019: $201 million) and Industrial activities
$5,719 million (2019: $2,207 million).
As part of a regular portfolio review, Glencore carries out an assessment of whether there are indicators of asset impairment 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 regarding potential future investment in
Coal mining operations have reduced 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 generally 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 6.1% – 13.5% (2019: 6.6% – 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 uses 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:
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 has had on the long-term outlook of the global economy, a comprehensive
review of the life of mine plan and related expansion projects was carried out in Q2 2020 where 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, lead to an impairment of
$2,347 million (related deferred tax obligations of $716 million were released) to its estimated recoverable amount of $1,503 million.
The valuation assumes long-term zinc and silver prices of $2,400/t and $20.00/lb, respectively and an operation specific discount
rate of 9.2%. Should the zinc and silver price assumptions fall by 10% (across the curve), a further impairment of $450 million would
be recognised. A 10% reduction in estimated annual production over the life of mine could result 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 extended care and maintenance subject to
government approval. In January 2021, an agreement was reached to sell Mopani to ZCCM (see note 15). At year end, the carrying
value was determined with reference to the estimated fair value of the consideration receivable from the sale transaction noted
above. The Mopani operations were therefore impaired by $1,041 million, to $861 million, reflecting the estimated fair value of the
agreed sales terms. The valuation remains sensitive to price and production volumes and a deterioration in these assumptions
could result in additional impairments. The operation specific discount rate used in the valuation was 10.5%. The short to long-
term copper price assumptions were $7,900/mt – 6,300/mt. Should the copper price assumptions fall by 10% (across the curve),
considering historical production performance, production volumes decline by 20%, a further $150 million and $235 million,
respectively, of impairment would be recognised.
• During H1 2020, pressure on the API2 European coal market (primary price reference market for our Colombian coal operations)
increased as European economies continue to progress their decarbonisation trajectory, 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 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.

30

continued
6. Impairments continued
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, 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 remains 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 be prolonged by an extended period of time, an
additional future impairment of the balance of the carrying amount could result.
• In June 2020, it was determined to keep the Lydenburg chrome smelter (Industrial activities segment) on care and maintenance,
reflecting 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
has had a negative effect on refining margins. As a result, Astron (Industrial activities segment) has lowered its long term through-
the-cycle outlook on refining margins by approximately 30%. As a result, 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 remains most sensitive to refining margins
and a deterioration in these assumptions could result in additional impairments. Should the margin assumptions fall by $1/bbl
(across the curve), a further $243 million of impairment would be recognised. Should the discount rate increase by 1%, a further
$88 million of impairment would be 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.
Advances and loans – current and non-current
In Q2 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 (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.
2019
Property, plant and equipment and intangible assets
• Following the sharp further decline in cobalt prices over H1 2019 and in response thereof, significant updates were made to
Mutanda’s mine plans, culminating in the decision to place the operation on temporary care and maintenance in December 2019,
for future restart, once the oversupplied cobalt market sufficiently recovers. As a result, the Mutanda operations (Industrial
activities segment) were impaired by $300 million to its estimated recoverable amount of $2,600 million, including continued
value recognition for the long-term copper sulphide resource potential. The valuation remains sensitive to price and a prolonged
temporary care and maintenance scenario and further deteriorations in these key assumptions may result in additional
impairment. The operation specific discount rate used in the valuation was 13.5%. The long-term copper and cobalt price
assumptions were $6,500/mt and $27.00/lb, respectively. As at 31 December 2019, had the future copper and cobalt assumptions
fallen by 10% (across the curve), or had it be determined that the temporary care and maintenance scenario be prolonged for an
additional 2 years, with all other assumptions held constant, a further impairment ranging between $317 million and $468 million
would have been recognised.
• During H1 2019, Glencore’s exploration licenses in Chad East expired and Glencore entered into discussions with the Government
of the Republic of Chad with a view to extending the exploration licenses on terms acceptable to both parties. The discussions did
not result in any agreement to extend the licenses. As a result, the full carrying value pertaining to the acreage held under
exploration licenses ($538 million) (Industrial activities segment) was impaired. The expiry of the exploration licences had no
impact on Glencore’s current production and development assets in the Mangara, Badila and Krim fields (Chad West), which are
held under exploitation licences.
• During H1 2019, challenging warehousing conditions persisted and as a result, the remaining goodwill of $50 million related to the
Access World warehousing business (Marketing activities segment) was impaired.

31
continued
6. Impairments continued
• Global LNG oversupply with resultant low spot gas prices, and to a lesser extent, higher EU carbon prices, placed considerable
pressure on the API2 European coal market, the primary price reference market for our Colombian coal operations. This impact,
including reflecting our latest Colombian mine-life approval expectations, resulted in a reduction in future production and
revenue estimates. As a result, the Prodeco operation (Industrial activities segment) was impaired by $514 million, along with an
inventory write down of $41 million to its estimated recoverable amount of $778 million. The valuation remains sensitive to price
and a further deterioration in the pricing outlook may result in a further impairment. The operation specific discount rate used in
the valuation was 8.1%. The short to long-term API2 price assumptions were $70 – 83/mt. As at 31 December 2019, had the future
price assumptions fallen by 10% (across the curve) with all other assumptions held constant, a further impairment of $466 million
would have been recognised.
• In November 2019, an agreement to dispose of the Oxidos and Cerro de Pasco operations (separately identifiable zinc and silver
processing areas within the Volcan group) (Industrial activities segment), which predominantly comprise an oxide processing
plant, environmental and rehabilitation provisions and old tailings dumps, was reached with $30 million due over a two year
period plus a royalty, contingent upon the price of silver and gold over certain thresholds, estimated to be worth $100 million on a
discounted basis. The transaction was subject to customary regulatory approvals and expected to close during 2020. As a result of
the agreed disposal, it has been determined that these operations meet the requirements of IFRS 5, which requires that its assets
and liabilities be presented as current assets and liabilities “held for sale” as at 31 December 2019 at the lower of their carrying value
or fair value less costs to sell, and as a result of this reclassification to assets held for sale, an impairment charge of $354 million was
recognised as well as a VAT impairment of $24 million. Also see note 15.
• 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 asses/projects was impaired, with $168 million recognised in our
Industrial activities segment and $30 million recognised in our Marketing activities segment.
VAT receivables
As a result of the continued decline in the Zambian government’s cash flow position and continued challenge by the Zambian
Revenue Authority on the validity of Mopani’s (Industrial activities segment) Value Added Tax (“VAT”) claims pertaining to 2013-15
submissions, such claims amounting to $127 million were impaired in full.
The balance of the impairment charges on VAT receivables (none of which were individually material) were recognised in our
Industrial activities segment ($5 million) and in our Marketing activities segment ($6 million).

32

continued
7. Income taxes
Income taxes consist of the following:

Current income tax expense (931) (1,315)
Adjustments in respect of prior year current income tax 88 74
Deferred income tax credit 2,005 603
Adjustments in respect of prior year deferred income tax 8 20
Total tax credit/(expense) reported in the statement of income 1,170 (618)
Deferred income tax credit recognised directly in other comprehensive income 6 4

Total tax credit recognised directly in other comprehensive income 6 4
The effective Group tax rate is different from the statutory Swiss income tax rate applicable to the Company for the
following reasons:

Loss before income taxes (5,116) (888)
Less: Share of income from associates and joint ventures (444) (114)
Parent Company’s and subsidiaries’ loss before income tax and attribution (5,560) (1,002)
Income tax credit calculated at the Swiss income tax rate of 12% (2019: 15%) 667 150
Tax effects of:
Different tax rates from the standard Swiss income tax rate 1,572 450
Tax-exempt income ($206 million (2019: $175 million) from recurring items
and $4 million (2019: $37 million) from non-recurring items) 210 212
Items not tax deductible ($589 million (2019: $689 million) from recurring items
and $280 million (2019: $200 million) from non-recurring items) (869) (889)
Foreign exchange fluctuations (76) (12)
Changes in tax rates ($Nil (2019: $Nil) from recurring items
and $9 million (2019: $13 million) from non-recurring items) (9) (13)
Utilisation and changes in recognition of tax losses and temporary differences (249) (187)
Recognition of temporary differences arising from retrospective changes in Australian tax restructuring
regulations – 120
Tax losses not recognised (169) (543)
Adjustments in respect of prior years 96 94
Other (3) –
Income tax credit/(expense) 1,170 (618)
The non-tax deductible items of $869 million (2019: $889 million) primarily relate to financing costs, impairments and various
other expenses.
The impact of tax-exempt income of $210 million (2019: $212 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.
In 2020, adjustments in respect of non-recurring tax losses of $724 million (2019: $Nil) have been recognised, of which $130 million
relate to previously unrecognised tax losses and provisions, and $594 million to tax losses arising on intra-group impairments in the
current period.

33
continued
7. Income taxes continued
DEFERRED TAXES
Deferred taxes as at 31 December 2020 and 2019 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 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)
Recognised in Business Foreign

Recognised in other combination currency
the statement comprehensive and disposal of exchange
US$ million 20192 of income income subsidiaries movements Other 2018
Deferred tax assets1
Tax losses carried forward 1,212 (308) – 6 – – 1,514
Other 265 54 4 7 (1) (13) 214
Total 1,477 (254) 4 13 (1) (13) 1,728
Deferred tax liabilities1

Depreciation and amortisation (5,680) 742 – (69) (35) – (6,318)
Mark-to-market valuations (71) (10) 9 3 – – (73)
Other (343) 145 (9) – (1) 90 (568)
Total (6,094) 877 – (66) (36) 90 (6,959)
Total Deferred tax – net (4,617) 623 4 (53) (37) 77 (5,231)
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.
2 As at 31 December 2019, deferred tax liabilities were restated by $120 million to reflect reclassification of uncertain tax provisions from provisions (see note 22).
Deferred tax assets are net of $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 2020, $2,998 million (2019: $1,571 million) of deferred tax assets related to available loss carry forwards
have been brought to account, of which $1,951 million (2019: $1,212 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:
• $843 million (2019: $517 million) in entities domiciled in the DRC,
• $658 million (2019: $287 million) in entities domiciled in Switzerland, and
• $365 million (2019: $366 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.

34

continued
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 2020 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. As part of the DRC tax audit noted below, certain previously incurred tax losses
may be disallowed. In addition, as noted in our 2019 financial statements, 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. 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 444 350
Income tax payable (927) (764)
Net income tax payable (483) (414)
1 As at 31 December 2019, income tax payable was restated by $410 million to reflect reclassification of uncertain tax provisions from provisions (see note 22).
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 2020, the Group has recognised $1,189 million (2019: $530 million) of uncertain
tax liabilities related to possible adverse outcomes of these open matters, of which, $579 million (2019: $120 million) has been
recognised net of deferred tax assets, with the balance of $610 million (2019: $410 million) recognised as an income tax payable.
UK Tax Audit
HMRC have issued formal transfer pricing, unallowable purposes and diverted profits tax assessments for the 2008-2018 tax years,
amounting to $774 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 in the next financial year.
DRC Tax Audit
Various tax authorities in the DRC have issued assessments denying financing related costs and other items, along with customs
related claims for alleged non-compliance or incorrect coding on certain filings. The Group is currently engaged with these tax
authorities working through a dispute resolution process. As the dispute resolution process is ongoing and its ultimate outcome
remains uncertain, 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.

35
continued
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 1,155 41
2 years 496 45
3 years 530 307
Thereafter 11,099 3,172
Unlimited 8,366 9,292
Total 21,646 12,857
As at 31 December 2020, unremitted earnings of $56,677 million (2019: $55,282 million) have been retained by subsidiaries for
reinvestment. No provision is made for income taxes.
8. Property, plant and equipment
2020
Mineral and Exploration
Freehold land Plant and Right-of-use petroleum and Deferred
US$ million Notes and buildings equipment assets rights evaluation mining costs Total
Gross carrying amount:
1 January 2020 6,211 46,225 2,313 30,223 2,248 18,009 105,229
Restatement1 – (160) – 540 – (380) –
1 January 2020 (restated) 6,211 46,065 2,313 30,763 2,248 17,629 105,229
Disposal of subsidiaries 25 (35) (321) (16) (24) – (233) (629)
Additions 32 2,746 575 58 – 721 4,132
Disposals (28) (1,260) (265) (42) (274) (90) (1,959)
Effect of foreign currency
(13) (121) (2) (114) – (1) (251)
exchange movements
Reclassification to held for sale 15 (111) (1,833) – (692) – (1,002) (3,638)
Reclassification from held for sale 15 176 36 1 16 1 8 238
Other movements2 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 10,910 2,158 9,508 49,872
Restatement1 – – – 150 – (150) –
1 January 2020 (restated) 2,017 24,646 633 11,060 2,158 9,358 49,872
Disposal of subsidiaries 25 (35) (321) (3) (24) – (234) (617)
Disposals (22) (1,173) (135) (29) (274) (88) (1,721)
Depreciation 375 2,680 519 1,363 – 1,522 6,459
Impairment 6 278 1,120 – 2,860 – 992 5,250
– (14) 1 (9) – 6 (16)
exchange movements
Reclassification to held for sale 15 (89) (1,405) – (461) – (938) (2,893)
Reclassification from held for sale 15 27 – – 14 1 – 42
Other movements2 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 Certain balances in the prior year have been restated to reflect their appropriate classification. Other than the restatement within property, plant and equipment headings, there are
no depreciation or amortisation changes.
2 Primarily consists of increases in rehabilitation costs of $399 million and reclassifications within the various property, plant and equipment headings.
Plant and equipment includes expenditure for construction in progress of $3,247 million (2019: $4,161 million). Mineral and petroleum
rights include biological assets of $19 million (2019: $19 million). Depreciation expenses included in cost of goods sold are
$6,385 million (2019: $6,970 million) and in selling and administrative expenses, $74 million (2019: $46 million).
During 2020, $33 million (2019: $66 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% (2019: 4%).

36

continued
8. Property, plant and equipment continued
As at 31 December 2020, with the exception of leases, no property, plant or equipment was pledged as security for borrowings (2019:
$Nil).
LEASES
The Group leases various assets including land and buildings and plant and equipment. As at 31 December 2020, the net book value
of recognised right-of use assets relating to land and buildings was $519 million (2019: $595 million) and plant and equipment
$1,053 million (2019: $1,085 million). The depreciation charge for the period relating to those assets was $101 million (2019: $103 million)
and $418 million (2019: $293 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 20 and their maturity analysis within note 26.
Amounts recognised in the statement of income are detailed below:

Depreciation on right-of-use assets (519) (396)
Interest expense on lease liabilities (96) (101)
Expense relating to short-term leases (863) (758)
Expense relating to low-value leases (4) (3)
Expense relating to variable lease payments not included in the measurement of the lease
(3) (1)
liability
Income from subleasing right-of-use assets 349 231
Total (1,136) (1,028)
At 31 December 2020, the Group is committed to $235 million of short-term lease payments and $370 million related to capitalised
leases not yet commenced.
2019
Mineral and Exploration
Freehold land Plant and Right-of-use petroleum and Deferred
US$ million Notes and buildings equipment assets rights evaluation mining costs Total
Gross carrying amount:
1 January 2019 (restated) 6,062 42,779 1,635 29,687 2,183 17,066 99,412
Business combination 25 200 772 169 467 – 15 1,623
Disposal of subsidiaries 25 (59) (32) – – – – (91)
Additions 65 3,558 656 104 1 962 5,346
Disposals (33) (679) (90) (40) – (632) (1,474)
4 81 (1) 74 – 9 167
exchange movements
Reclassification to held for sale 15 (176) (36) (1) (16) (1) (8) (238)
Other movements 148 (218) (55) (53) 65 597 484
31 December 2019 6,211 46,225 2,313 30,223 2,248 18,009 105,229
Accumulated depreciation and

impairment:
1 January 2019 (restated) 1,655 21,430 312 8,758 1,588 8,112 41,855
Disposal of subsidiaries 25 (4) (32) – – – – (36)
Disposals (6) (553) (77) (1) – (611) (1,248)
Depreciation 377 3,059 396 1,709 6 1,469 7,016
Impairment 6 20 264 – 804 532 265 1,885
1 26 – 15 – – 42
exchange movements
Reclassification to held for sale 15 (27) – – (14) (1) – (42)
Other movements 1 452 2 (361) 33 273 400
31 December 2019 2,017 24,646 633 10,910 2,158 9,508 49,872
Net book value 31 December 2019 4,194 21,579 1,680 19,313 90 8,501 55,357

37
continued
9. Intangible assets
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)
Effect of foreign currency exchange movements – (62) (18) (41) (121)
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 6 – – 5 253 258
Effect of foreign currency exchange movements – (3) (1) (7) (11)
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.
2019
Licences, Customer
Port allocation tradmarks relationships
US$ million Notes Goodwill rights and software and other Total
Cost:
1 January 2019 (restated) 13,293 1,336 521 424 15,574
Business combination 25 – – 24 347 371
Disposal of subsidiaries 25 – – – (33) (33)
Additions – – 10 12 22
Disposals – (1) (11) (1) (13)
Effect of foreign currency exchange movements – 40 (4) (1) 35
Other movements – (1) 56 (28) 27
31 December 2019 13,293 1,374 596 720 15,983
Accumulated amortisation and impairment:

1 January 2019 8,243 159 268 86 8,756
Disposals – – (11) (1) (12)
Amortisation expense1 – 33 35 76 144
Impairment 6 50 – – 19 69
Effect of foreign currency exchange movements – 7 – – 7
Other movements – (1) 23 (9) 13
31 December 2019 8,293 198 315 171 8,977
Net book value 31 December 2019 5,000 1,176 281 549 7,006
1 Recognised in cost of goods sold.

38

continued
9. 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 Richard Bay Coal
Terminal in South Africa recognised as part of previous business combinations. The rights are amortised on a straight-line basis over
the estimated economic life of the port of 15 years.
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 respect of
business combinations completed in 2019 (see note 25). 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 2021 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 15
times (2019: 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. The determination of FVLCD for each of the marketing CGUs used Level 3 valuation
techniques in both years.

39
continued
10. Investments in associates, joint ventures and other investments
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

1 January 12,984 13,909
Additions 102 104
Disposals (14) (96)
Share of income from associates and joint ventures 444 114
Share of other comprehensive loss from associates and joint ventures (14) (37)
Transfer of previously equity accounted investment to subsidiary 25 – (40)
Fair value of retained interest in Terminales Portuarios Chancay S.A. 25 – 150
Impairments 6 (96) (137)
Dividends received (1,015) (942)
Other movements 9 (41)
31 December 12,400 12,984
Of which:
Investments in associates 6,038 6,858
Investments in joint ventures 6,362 6,126
As at 31 December 2020, the carrying value of our listed associates is $508 million (2019: $605 million), mainly comprising Century
Aluminum and Trevali, which have carrying values of $261 million (2019: $395 million) and $77 million (2019: $119 million), respectively.
The fair value of our listed associates, using published price quotations (a Level 1 fair value measurement) is $737 million (2019:
$427 million). As at 31 December 2020, $111 million (2019: $104 million) of the carrying amount of Glencore’s investment in Century
Aluminium was pledged under a loan facility, with proceeds received and recognised in current borrowings of $100 million (2019:
$80 million)(see note 20).
Cerrejón
Included in share of income from associates is Glencore’s attributable share of impairment relating to Cerrejón amounting to
$445 million (net of taxes of $211 million). As at 31 December 2020, the carrying amount of Glencore’s investment in Cerrejón
amounts to $595 million (2019: $1,143 million) which is equivalent to its recoverable amount based on a VIU calculation. The
impairment results from lower API 2 coal price assumptions and reduced production estimates, including updated via mine-life
approval expectations. The operation specific discount rate used in the valuation was 7.9%. The short to long-term API 2 price
assumptions were $57 – 65/mt. Should the price assumptions fall by 10% (across the curve), with all other assumptions held constant,
a further impairment of $231 million would be recognised. A 10% reduction in estimated annual production over the life of mine
could result in an additional impairment of $216 million.
Impairments
Primarily comprises an impairment charge in respect of our investment in Century Aluminum ($73 million). 2019 primarily
comprised Trevali ($48 million) and Oil vessels’ entities ($67 million).
Terminales Portuarios Chancay S.A.
In April 2019, Glencore disposed of a 60% interest in Terminales Portuarios Chancay S.A. for $11 million (see notes 4 and 25),
subsequently accounting for its remaining share of 40% using the equity method.

40

continued
10. Investments in associates, joint ventures and other investments continued
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
material joint joint
US$ million Cerrejón Antamina associates Collahuasi Viterra ventures ventures
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)
The above assets and liabilities include the following:
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
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 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)/income – – – (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 and other expenses of $87 million.
3 Glencore’s attributable share of impairment relating to Cerrejón amounts to $445 million, net of taxes of $211 million.

41
continued
2019 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 2,399 4,589 6,988 4,905 5,712 10,617 17,605
Current assets 630 1,276 1,906 1,306 7,363 8,669 10,575
Non-current liabilities (768) (1,170) (1,938) (1,207) (3,855) (5,062) (7,000)
Current liabilities (57) (486) (543) (794) (5,389) (6,183) (6,726)
The above assets and liabilities include the following:
Cash and cash equivalents 157 55 212 163 184 347 559
Current financial liabilities1 (21) (53) (74) (15) (2,770) (2,785) (2,859)
Non-current financial liabilities1 (15) (146) (161) (95) (3,450) (3,545) (3,706)
Net assets 31 December 2019 2,204 4,209 6,413 4,210 3,831 8,041 14,454
Glencore's ownership interest 33.3% 33.8% 44.0% 49.9%
Acquisition fair value and other adjustments 409 1,872 2,281 1,116 1,246 2,362 4,643
Carrying value 1,143 3,295 4,438 2,968 3,158 6,126 10,564
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 2019, 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 1,483 3,038 4,521 3,147 25,057 28,204 32,725
(Loss)/income for the year (1,440) 892 (548) 945 (29) 916 368
Other comprehensive loss – – – (23) (3) (26) (26)
Total comprehensive (loss)/income (1,440) 892 (548) 922 (32) 890 342
Glencore's share of dividends paid 66 243 309 467 – 467 776
The above (loss)/income for the year includes the following:

Depreciation and amortisation (565) (811) (1,376) (640) (524) (1,164) (2,540)
Interest income1 – 15 15 35 28 63 78
Interest expense2 (12) (3) (15) (25) (202) (227) (242)
Impairment, net of tax3 (1,305) – (1,305) – – – (1,305)
Income tax credit/(expense) 46 (489) (443) (437) (40) (477) (920)
1 Includes foreign exchange gains and other income of $68 million.
2 Includes foreign exchange losses of $16 million.
3 Glencore’s attributable share of impairment relating to Cerrejón amounts to $435 million, net of taxes of $213 million, resulting from lower API2 coal price assumptions and reduced
production estimates, including in relation to updated mine-life approval expectations. The operation specific discount rate used in the valuation was 8.1%. The short to long-term API 2
price assumptions were $70 – 83/mt. As at 31 December 2019, had the price assumptions fallen by 10% (across the curve) with all other assumptions held constant a further impairment
of $312 million would have been recognised.

42

continued
Aggregate information of associates that are not individually material:

The Group's share of loss (120) (110)
The Group's share of other comprehensive loss (8) (25)
The Group's share of total comprehensive loss (128) (135)
Aggregate carrying value of the Group's interests 2,243 2,420
The amount of corporate guarantees in favour of associates and joint ventures as at 31 December 2020 was $560 million (2019:
$983 million). No amounts have been claimed or provided as at 31 December 2020. Glencore’s share of joint ventures’ capital
commitments amounts to $105 million (2019: $108 million).
OTHER INVESTMENTS
Fair value through other comprehensive income1
EN+ GROUP PLC 701 674
OAO NK Russneft2 309 869
Yancoal 164 172
OSJC Rosneft 357 440
Other 116 135
1,647 2,290
Fair value through profit and loss
Century Aluminum cash-settled equity swaps 49 69
Champion Iron Limited share warrants3 37 28
86 97
Total 1,733 2,387
1 Fair value through other comprehensive income includes net disposals of $12 million for the period.
2 Glencore’s investment in OAO NK Russneft is pledged under a loan facility issued to OAO NK Russneft.
3 The warrants are exercisable until October 2025 for conversion into direct share ownership.
Although Glencore holds a 25% interest in Russneft, it does not exercise significant influence over its financial and operating policy
decisions as the majority shareholder retains operational and board control.
During the year, dividend income from equity investments designated as at fair value through other comprehensive income
amounted to $32 million (2019: $49 million).

43
continued
11. Advances and loans

Financial assets at amortised cost
Loans to associates 246 294
Other non-current receivables and loans 600 466
Rehabilitation trust fund 148 147
Financial assets at fair value through profit and loss
Other non-current receivables and loans 102 116
Deferred consideration 28 302 45
Non-financial instruments
Pension surpluses 23 40 42
Advances repayable with product1 1,334 1,172
Land rights prepayment 150 –
Other non-current receivables 120 145
Total 3,042 2,427
1 Net of $1,534 million (2019: $1,216 million) provided by various banks, the repayment terms of which are contingent upon and connected to the future delivery of contractual production.
FINANCIAL ASSETS AT AMORTISED COST

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 585 448
Other 15 18
Total 600 466
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 gross carrying value of other non-current receivables and loans
measured as 12-month expected credit losses was $626 million (2019:$507 million) and as lifetime expected credit losses $314 million
(2019:$302 million), the expected credit losses on which were $37 million (2019:$57 million) and $303 million (2019:$298 million)
respectively. The movement in loss allowance for financial assets classified at amortised cost is detailed below:
Other non- Other non-

Loans to current Loans to current
associates receivables and associates receivables and
US$ million loans 2020 loans 2019
Gross carrying value 31 December 308 940 1,248 325 821 1,146
Loss allowances
1 January 31 355 386 27 323 350
Released during the period1 – (48) (48) – (10) (10)
Charged during the period1 31 33 64 4 42 46
31 December 62 340 402 31 355 386
Net carrying value 31 December 246 600 846 294 466 760
1 $45 million (2019: $31 million) recognised as an impairment (see note 6) and the balancing credit of $29 million (2019: charge of $5 million) recognised in cost of goods sold.

44

continued
11. Advances and loans continued
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS

Deferred consideration
In 2020, fair value movements of net positive $379 million (2019: $35 million) were recognised (see note 5).
NON-FINANCIAL INSTRUMENTS
Advances repayable with product
Counterparty
Société Nationale d'Electricité (SNEL) power advances 312 303
Chad State National Oil Company 347 360
Société Nationale des Pétroles du Congo 156 18
Other1 519 491
Total 1,334 1,172
1 Comprises no individually material items.
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 is due to end in Q1 2021.
The loans are being repaid via discounts on electricity purchases, which are expected to accelerate upon completion of the
refurbishment programme.
Chad State National Oil Company
Glencore has provided a net $359 million (2019: $379 million) to the Chad State National Oil Company (SHT) to be repaid through
future oil deliveries over ten years. As at 31 December 2020 the advance is net of $714 million (2019: $778 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, $347 million (2019: $360 million) is receivable after 12 months and is presented within
Other non-current receivables and loans and $12 million (2019: $19 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 (2019: $156 million) to SNPC repayable through future oil deliveries over five years.
As at 31 December 2020, the advance is net of $498 million (2019: $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,
$156 million (2019: $18 million) is due after 12 months and is presented within Other long-term receivables and loans and $Nil (2019:
$138 million) is due within 12 months and included within Accounts receivable. SNPC has indicated to Glencore and the syndicate of
banks that it wishes to restructure the terms of this arrangement.
Land rights prepayment
On 19 December 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.

45
continued
12. Inventories
CURRENT INVENTORY
Inventories of $22,852 million (2019: $19,936 million) comprise $12,260 million (2019: $10,516 million) of inventories carried at fair value
less costs of disposal and $10,592 million (2019: $9,420 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 $124,037 million (2019: $192,418 million).
Fair value of inventories is a Level 2 fair value measurement (see note 28) 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
20). As at 31 December 2020, the total amount of inventory pledged under such facilities was $804 million (2019: $430 million). The
proceeds received and recognised as current borrowings were $679 million (2019: $339 million) and $80 million (2019: $80 million) as
non-current borrowings.
NON-CURRENT INVENTORY
$678 million (2019: $575 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.
13. Accounts receivable

Financial assets at amortised cost
Trade receivables 3,360 3,692
Trade advances – 44
Margin calls paid1 3,692 2,198
Associated companies 288 326
Other receivables2 356 394
Financial assets at fair value through profit and loss
Trade receivables containing provisional pricing features 28 4,459 6,526
Finance lease receivable 28 9 14
Deferred consideration 28 130 37
Advances repayable with product3 922 1,433
Other tax and related receivables 1,938 2,007
Total 15,154 16,671
1 Includes $65 million (2019: $635 million) of cash collateral payments under margin arrangements related to cross currency swaps held to hedge non-U.S. dollar denominated bonds.
2 Includes current portion of non-current loans receivable of $241 million (2019: $129 million).
3 Includes advances, net of $298 million (2019: $1,248 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 24 days (2019: 18 days). The carrying value of trade receivables approximates fair value.

46

continued
13. Accounts receivable continued
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, a credit of $3 million (2019: charge of $2 million) of such losses were
recognised. The following table details the risk profile of trade receivables based on the Group’s provision matrix.
US$ million Trade receivables – days past due

As at 31 December 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
US$ million Trade receivables – days past due

As at 31 December 2019 Not past due <30 31 – 60 61 – 90 >90 Total
Gross carrying amount 3,077 356 56 59 192 3,740
Expected credit loss rate 0.28% 0.55% 0.83% 1.10% 2.34%
Lifetime expected credit loss (9) (2) – (1) (4) (16)
Total 3,068 354 56 58 188 3,724
The movement in allowance for credit loss relating to receivables from associates and other receivables is detailed below:
Receivables Other Receivables Other

US$ million from associates receivables 2020 from associates receivables 2019
Gross carrying value 31 December 410 488 898 336 473 809
Allowance for credit loss

1 January 10 79 89 9 35 44
Released during the period1 (1) (3) (4) – (7) (7)
Charged during the period1 103 62 165 1 51 52
Utilised during the period – (6) (6) – – –
Effect of foreign currency exchange
movements 10 – 10 – – –
31 December 122 132 254 10 79 89
Net carrying value 31 December 288 356 644 326 394 720
1 $123 million (2019: $Nil) recognised as an impairment (see note 6) and the balancing $38 million (2019: $45 million) net charge recognised in cost of good 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 20). As at 31 December 2020, the total amount of trade receivables pledged was $693 million (2019:
$837 million) and proceeds received and classified as current borrowings amounted to $567 million (2019: $719 million).
14. Cash and cash equivalents

Bank and cash on hand 1,387 1,618
Deposits and treasury bills 111 281
Total 1,498 1,899
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 2020, $82 million (2019: $92 million) was restricted.

47
continued
15. Assets and liabilities held for sale
In November 2020, Glencore agreed, subject to various conditions precedent and documentation, to sell its controlling interest in
Mopani to 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. Completion of the sale
is conditional on receipt of certain regulatory approvals in Zambia and ZCCM shareholders, expected to occur over H1 2021. The sale
is considered highly probable as at 31 December 2020 and as a result, it has been determined that these operations meet the
requirements of IFRS 5 which requires that its assets and liabilities be presented as current assets and liabilities “held for sale” as
at 31 December 2020 at the lower of their carrying value or fair value less costs to sell. Also see note 6.
In November 2019, an agreement was reached to dispose the Oxidos and Cerro de Pasco operations (separately identifiable zinc and
silver processing areas within the Volcan group) which predominantly comprise an oxide processing plant, environmental and
rehabilitation provisions and old tailings dumps for $30 million, due over a two year period, and a royalty contingent upon the price
of silver and gold over certain thresholds, estimated to be worth $100 million on a discounted basis. The transaction was subject to
customary regulatory approvals and was expected to close during 2020. The long stop date has, however, elapsed with the
conditions precedent not having been fulfilled. As a result, net assets (assets of $286 million and liabilities of $156 million) previously
classified as held for sale in 2019 were reclassified to the respective line items in the statement of financial position at depreciated
cost and a one-time depreciation charge of $18 million was recognised to reflect the additional depreciation that would have been
charged if the related assets had not previously been classified as held for sale.
Assets of $1,046 million and liabilities of $185 million have been classified as held for sale within the Industrial activities segment as
detailed below:
2020 2019
US$ million Mopani Cerro de Pasco
Non-current assets
Property, plant and equipment 745 196
Advances and loans 5 –
Deferred tax assets – 13
750 209
Current assets
Inventories 187 22
Accounts receivable 106 53
Prepaid expenses 3 –
Cash and cash equivalents – 2
296 77
Total assets held for sale 1,046 286
Deferred tax liabilities – (68)
Provisions (64) (52)
(64) (120)
Current liabilities
Borrowings (26) (2)
Accounts payable (58) (34)
Provisions (24) –
Income tax payable (13) –
(121) (36)
Total liabilities held for sale (185) (156)
Total net assets held for sale 861 130

48

continued
16. Share capital and reserves
Number Share
of shares Share capital premium
(thousand) (US$ million) (US$ million)
Authorised:
31 December 2020 and 2019 Ordinary shares with a par value of $0.01 each 50,000,000
Issued and fully paid up:
1 January 2019 and 31 December 2019 – Ordinary shares 14,586,200 146 45,794
31 December 2020 – Ordinary shares 14,586,200 146 45,794
Treasury Shares Trust Shares Total

Number Share Number Share Number Share
of shares premium of shares premium of shares premium
(thousand) (US$ million) (thousand) (US$ million) (thousand) (US$ million)
Own shares:
1 January 2019 583,572 (2,483) 170,130 (835) 753,702 (3,318)
Own shares purchased during the year 678,315 (2,318) – – 678,315 (2,318)
Own shares disposed during the year – – (40,138) 199 (40,138) 199
31 December 2019 1,261,887 (4,801) 129,992 (636) 1,391,879 (5,437)
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)
OWN SHARES
Own shares comprise shares acquired under the Company’s share buy-back programmes 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, primarily
assumed as part of previous business combinations.
The Trusts also coordinate the funding and manage the delivery of ordinary shares and free share awards under certain of
Glencore’s share plans. The shares have been acquired by either stock market purchases or share issues from the Company. The
Trusts are permitted to sell the shares and may hold up to 5% of the issued share capital of the Company at any one time. The Trusts
have waived the right to receive distributions from the shares that they hold. Costs relating to the administration of the Trusts are
expensed in the period in which they are incurred.
As at 31 December 2020: 1,364,888,033 shares (2019: 1,391,879,129 shares), equivalent to 9.36% (2019: 9.54%) of the issued share capital
were held at a cost of $5,304 million (2019: $5,437 million) and market value of $4,341 million (2019: $4,347 million).

49
continued
16. Share capital and reserves continued
OTHER RESERVES
Net Net ownership
Translation Cash flow unrealised changes in
US$ million adjustment hedge reserve gain/(loss) subsidiaries Total
1 January 2020 (2,665) (97) 364 (2,573) (4,971)
Exchange loss 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
Change in ownership interest in subsidiaries (see note 33) – – – (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)
1 January 2019 (2,779) (47) 38 (2,149) (4,937)
Exchange gain on translation of foreign operations 114 – – – 114
Loss on cash flow hedges, net of tax – (51) – – (51)
Gain on equity investments accounted for at fair value
– – 342 – 342
through other comprehensive income
Change in ownership interest in subsidiaries (see note 33) – – – (418) (418)
Loss due to changes in credit risk on financial liabilities
– – (1) – (1)
accounted for at fair value through profit and loss
Reclassifications – 1 (15) (6) (20)
31 December 2019 (2,665) (97) 364 (2,573) (4,971)
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 hedging instruments contained within hedge
relationships until the hedged item impacts profit or loss.
The net unrealised gain/loss reserve is used to accumulate the gains and lossess associated with the remeasurement of the Group’s
investments carried at FVTOCI.
The net ownership changes in subsidiaries reserve is used to capture equity movements arising from changes in the Group’s
ownership in its subdiairies.

50

continued
17. Earnings per share

Loss attributable to equity holders of the Parent for basic earnings per share (1,903) (404)
Weighted average number of shares for the purposes of basic earnings per share (thousand) 13,216,886 13,684,091
Effect of dilution:
Equity-settled share-based payments (thousand)1 139,989 92,470
Weighted average number of shares for the purposes of diluted earnings per share (thousand) 13,216,886 13,684,091
Basic loss per share (US$) (0.14) (0.03)

Diluted loss per share (US$) (0.14) (0.03)
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 1/2019 as issued by the
South African Institute of Chartered Accountants (SAICA), is reconciled using the following data:

Loss attributable to equity holders of the Parent for basic earnings per share (1,903) (404)
Net loss on disposals2 36 43
Net loss on disposals – tax (11) (6)
Impairments3 6,693 3,191
Impairments – non-controlling interest (1,596) (270)
Impairments – tax (1,214) (323)
Headline earnings for the year 2,005 2,231
Headline earnings per share (US$) 0.15 0.16

Diluted headline earnings per share (US$) 0.15 0.16
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 because they were anti-dilutive.
2 See note 4.
3 Comprises impairments of property, plant and equipment, investments and advances and loans (see note 6), Glencore’s share of impairments booked directly by various associates
(see note 2) and impairments related to Cerrejón (see note 10).
18. Distributions
The proposed distribution in respect of the year ended 31 December 2020 of $0.12 per ordinary share amounting to $1,587 million is
subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial
statements. Owing to the uncertainty resulting from the Covid pandemic and to support the Group’s overall financial position
during 2020, the Board elected not to pay any distributions in 2020. A distribution of $0.20 per ordinary share amounting to
$2,710 million was paid in 2019.

51
continued
19. Share-based payments
Number Number
Number of of awards of awards Expense
awards Fair value at outstanding outstanding recognised Expense
granted grant date 2020 2019 2020 recognised 2019
US$ million (thousands) (US$ million) (thousands) (thousands) (US$ million) (US$ million)
Deferred Bonus Plan – Bonus
share award
2018 Series 12,891 65 4,316 11,052 – –
2019 Series 10,791 37 7,914 9,552 – 33
2020 Series 45,798 85 45,798 – 85 –
69,480 58,028 20,604 85 33
Performance Share Plan

2015 Series 79,787 109 9,509 11,878 – 5
2016 Series 23,984 84 – 7,407 3 9
2017 Series 19,732 95 5,965 12,498 10 27
2018 Series 28,458 104 18,396 27,912 29 54
2019 Series 29,689 90 28,330 12,171 55 –
2020 Series 19,761 59 19,761 – – –
201,411 81,961 71,866 97 95
Total 270,891 139,989 92,470 182 128
DEFERRED BONUS PLAN

Under the Glencore Deferred Bonus Plan (DBP), the payment of a portion of a participant’s annual bonus is deferred for a period of
one to two years as an award of either ordinary shares (a ‘‘Bonus Share Award’’) or cash. The awards are vested at grant date with no
further service conditions, however they are subject to 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 these 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 with respect to the average share price of Glencore plc in the month of granting.
PERFORMANCE SHARE PLAN

Under the Glencore Performance Share Plan (PSP), participants are awarded PSP awards which vest in annual tranches over a
specified period, subject to continued employment and forfeiture for malus events. At grant date, each PSP award is equivalent to
one ordinary share of Glencore. The awards vest in three or five equal tranches on 31 December or 31 January 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 market price of Glencore’s
ordinary shares at grant date. The PSP 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 average share price of
Glencore plc in the month of granting.
SHARE-BASED AWARDS ASSUMED IN PREVIOUS BUSINESS COMBINATIONS

Weighted
Total options average
outstanding exercise
(thousands) price (GBP)
1 January 2020 102,623 3.98
Lapsed (30,956) 3.38
Exercised – –
31 December 2020 71,667 4.25
1 January 2019 106,637 3.88
Lapsed – –
Exercised1 (4,014) 1.10
31 December 2019 102,623 3.98
1 The weighted average share price at date of exercise of the share based awards was GBP3.03.

52

continued
19. Share-based payments continued
As at 31 December 2020, a total of 71,667,011 options (2019: 102,623,112 options) were outstanding and exercisable, having a range of
exercise prices from GBP3.91 to GBP4.80 (2019: GBP3.37 to GBP4.80) and a weighted average exercise price of GBP4.25 (2019:
GBP3.98). These outstanding awards have expiry dates ranging from February 2021 to February 2022 (2019: February 2020 to
February 2022) and a weighted average contractual life of 275 days (2019: 438 days). The awards may be satisfied at Glencore’s
option, 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. Glencore currently intends to settle these awards, when exercised, by the transfer of ordinary shares held
in treasury.
20. Borrowings

Non-current borrowings
Capital market notes 22,353 21,452
Committed syndicated revolving credit facilities 4,766 5,615
Lease liabilities 1,008 1,158
Other bank loans 1,100 842
Total non-current borrowings 29,227 29,067
Current borrowings
Secured inventory/receivables/other facilities 10/12/13 1,346 1,138
U.S. commercial paper 1,090 675
Capital market notes 2,018 2,455
Lease liabilities 513 484
Other bank loans1 3,285 3,224
Total current borrowings 8,252 7,976
Total borrowings 37,479 37,043
1 Comprises various uncommitted bilateral bank credit facilities and other financings and is net of $135 million (2019: $Nil) of funds advanced by the Group under a netting arrangement
with a bank and a subsidiary.
RECONCILIATION OF CASH FLOW TO MOVEMENT IN BORROWINGS

Cash related movements in borrowings1
Proceeds from issuance of capital market notes 3,362 3,866
Repayment of capital market notes (4,017) (3,167)
Repurchase of capital market notes (72) –
Repayment of revolving credit facilities (870) (29)
Proceeds from other non-current borrowings 392 291
Repayment of other non-current borrowings (44) (325)
Repayment of lease liabilities (560) (358)
Proceeds from U.S. commercial papers 415 79
Proceeds from/(repayment of) current borrowings 217 (682)
(1,177) (325)
Non-cash related movements in borrowings
Borrowings (disposed of)/acquired in business combinations 25 (13) 284
Foreign exchange movements 812 231
Fair value hedge movements2 344 387
Impact of adoption of IFRS 16 – 865
Change in lease liabilities 435 582
Interest on convertible bonds 20 19
Other non-cash movements 15 6
1,613 2,374
Increase in borrowings for the year 436 2,049
Total borrowings – opening 37,043 34,994
Total borrowings – closing 37,479 37,043
1 See consolidated statement of cash flows.
2 The fair value hedge movements were equivalent to the change in fair value of the respective hedging instrument (see note 26).

53
continued
20. Borrowings continued
CAPITAL MARKET NOTES

US$ million Maturity 2020 2019
Euro 1,250 million 1.25% coupon bonds Mar 2021 – 1,386
Euro 600 million 2.75% coupon bonds Apr 2021 – 667
Euro 700 million 1.625% coupon bonds Jan 2022 865 793
Euro 1,000 million 1.875% coupon bonds Sep 2023 1,219 1,118
Euro 400 million 3.70% coupon bonds Oct 2023 520 480
Euro 600 million 0.625% coupon bonds Sep 2024 732 672
Euro 750 million 1.75% coupon bonds Mar 2025 951 860
Euro 500 million 3.75% coupon bonds Apr 2026 680 616
Euro 500 million 1.50% coupon bonds Oct 2026 632 568
Euro 950 million 1.125% coupon bonds Mar 2028 1,159 –
Eurobonds 6,758 7,160
JPY 10 billion 1.075% coupon bonds May 2022 97 92
GBP 500 million 6.00% coupon bonds Apr 2022 685 664
GBP 500 million 3.125% coupon bonds Mar 2026 724 672
Sterling bonds 1,409 1,336
CHF 250 million 2.25% coupon bonds May 2021 – 254
CHF 175 million 1.25% coupon bonds Oct 2024 202 184
CHF 250 million 0.35% coupon bonds Sep 2025 283 258
CHF 225 million 1.00% coupon bonds Mar 2027 256 –
Swiss Franc bonds 741 696
US$ 1,000 million 4.95% coupon bonds Nov 2021 – 1,022
US$ 600 million 5.375% coupon bonds Feb 2022 535 535
US$ 250 million LIBOR plus 1.65% coupon bonds May 2022 250 250
US$ 1,000 million 4.25% coupon bonds Oct 2022 1,002 1,005
US$ 500 million 3.00% coupon bonds Oct 2022 461 498
US$ 1,500 million 4.125% coupon bonds May 2023 1,580 1,542
US$ 1,000 million 4.125% coupon bonds Mar 2024 969 993
US$ 1,000 million 4.625% coupon bonds Apr 2024 1,069 1,042
US$ 625 million non-dilutive convertible bonds Mar 2025 532 513
US$ 500 million 4.00% coupon bonds Apr 2025 531 502
US$ 1,000 million 1.625% coupon bonds Sep 2025 992 –
US$ 1,000 million 4.00% coupon bonds Mar 2027 1,103 1,030
US$ 50 million 4.00% coupon bonds Mar 2027 50 50
US$ 750 million 4.875% coupon bonds Mar 2029 864 801
US$ 1,000 million 2.500% coupon bonds Sep 2030 991 –
US$ 250 million 6.20% coupon bonds Jun 2035 270 271
US$ 500 million 6.90% coupon bonds Nov 2037 586 589
US$ 500 million 6.00% coupon bonds Nov 2041 537 538
US$ bonds 13,348 12,168
Total non-current bonds 22,353 21,452

54

continued
20. Borrowings continued
US$ million Maturity 2020 2019

GBP 500 million 7.375% coupon bonds May 2020 – 675
Euro 750 million 3.375% coupon bonds Sep 2020 – 842
Euro 600 million 2.750% coupon bonds Apr 2021 724 –
CHF 500 million 1.250% coupon bonds Dec 2020 – 519
CHF 250 million 2.250% coupon bonds May 2021 284 –
US$ 1,000 million 2.875% coupon bonds Apr 2020 – 419
US$ 1,000 million 4.950% coupon bonds Nov 2021 1,010 –
Total current bonds 2,018 2,455
2020 BOND ACTIVITIES

• In September 2020, issued:
– 7.5 year EUR 850 million, 1.125% coupon bonds
– 5.5 year CHF 225 million, 1.000% coupon bonds
– 5 year $1,000 million, 1.625% coupon bonds
• In December 2020, issued 7.5 year EUR 100 million, 1.125% coupon bonds
2019 BOND ACTIVITIES

• In March 2019, issued:
– 10 year $750 million, 4.875% coupon bonds
– 7 year GBP 500 million 3.125% coupon bonds
• In April 2019, issued 7 year EUR 500 million 1.50% coupon bonds
• In September 2019, issued 6 year CHF 250 million 0.35% coupon bonds and 5 year EUR 600 million 0.625% coupon bonds
COMMITTED SYNDICATED REVOLVING CREDIT FACILITIES

In March 2020 (effective May 2020), Glencore signed new one-year revolving credit facilities of $9,975 million, refinancing the
$9,775 million one-year revolving facilities signed in March 2019, as well as extended its medium term facilities of $4,650 million.
Funds drawn under the facilities bear interest at US$LIBOR plus a margin of 40 basis points.
As at 31 December 2020, the active facilities comprise:
• a $9,975 million one year revolving credit facility with a one-year borrower’s term-out option (to May 2022) and a one-year
extension option; and
• a $4,650 million medium-term revolving credit facility (to May 2025), with a one-year extension option.
As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adverse
change clauses and no external factor clauses.
SECURED FACILITIES
US$ million Maturity1 Interest 2020 2019
Syndicated committed metals
Nov 2024 3.2% 81 82
inventory/receivables facilities2
Syndicated uncommitted metals and oil
Jan3/Jul/Aug 2021 US$ LIBOR + 65 bps 1,245 1,056
inventory/receivables facilities
Other secured facilities Mar 2021 US$ LIBOR + 75 bps 100 80
Total 1,426 1,218
Current 1,346 1,138
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.
3 Since year-end, in the ordinary course of business, these maturities have been rolled/extended as required.

55
continued
21. Deferred income
Unfavourable
US$ million contracts Prepayments Total
1 January 2020 609 2,619 3,228
Additions – 1,047 1,047
Accretion in the year – 127 127
Utilised 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
1 January 2019 684 2,029 2,713

Additions – 940 940
Accretion in the year – 134 134
Utilised in the year (83) (484) (567)
Effect of foreign currency exchange difference 8 – 8
31 December 2019 609 2,619 3,228
Current 78 480 558
Non-current 531 2,139 2,670
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 2034 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.
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, Antapaccay and Ernest Henry 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 2020, $1,391 million (2019: $1,499 million) of product delivery obligations remain of
which, $118 million (2019: $103 million) are due within 12 months.
• Silver supply arrangement – In December 2019, Glencore signed an extension of a silver prepayment arrangement, in exchange
for an upfront advance payment of $500 million. Under the terms of the arrangement, Glencore is required to deliver an average
of 19 million ounces of silver per annum, over a three year period. In December 2020, Glencore signed an extension of and one
new silver prepayment arrangement, in exchange for an upfront advance of $426 million required to deliver an average of
6 million ounces of silver per annum, over a five year period. As at 31 December 2020, $841 million (2019: $680 million) of product
delivery obligations remain of which, $292 million (2019: $265 million) are due within 12 months.
• Cobalt supply arrangement – In March 2019, Glencore signed a six year cobalt 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 2020, $100 million (2019:
$102 million) of delivery obligations remain of which, $5 million (2019: $1 million) are due within 12 months.
• Palladium supply arrangement – In June 2019, Glencore signed a five year palladium prepayment arrangement in exchange for
an upfront advance payment of $200 million. Under the terms of the arrangement, Glencore is required to deliver a minimum
of 44 thousand ounces ounces of palladium per annum over a five year. In May 2020, Glencore signed a three year palladium
prepayment arrangement in exchange for an upfront advance payment of $40 million. Under the terms of the arrangement,
Glencore is required to deliver a minimum of 12 thousand ounces of palladium per annum over three year period. As at
31 December 2020, $200 million (2019: $200 million) of product delivery obligations remain of which, $63million (2019:
$40 million) are due within 12 months.

56

continued
21. Deferred income continued
• Gold supply arrangement – In December 2020, Glencore signed a 12 month gold prepayment arrangement in exchange for an
upfront advance payment of $360 million. Under the terms of the arrangement, Glencore is required to deliver an average of
19 thousand ounces of gold per month. As at 31 December 2020, $360 million (2019: $Nil) of product delivery obligations remain
of which, $360million (2019: $Nil) are due within 12 months.
22. Provisions (including post-retirement benefits)
Post-retirement Other
employee employee Rehabilitation Onerous
US$ million Notes benefits entitlements costs contracts Other Total1
1 January 2020 958 228 4,847 595 633 7,261
Utilised (106) (71) (189) – (37) (403)
Released – – – (282) (42) (324)
Accretion 26 – 144 40 4 214
Disposal of subsidiaries 25 – (9) (208) – (15) (232)
Additions 94 38 614 184 245 1,175
Reclassification to held for sale 15 – (10) (54) – (24) (88)
Reclassification from held for sale 15 – – 45 – 7 52
8 5 (17) (2) (25) (31)
movements
31 December 2020 980 181 5,182 535 746 7,624
Current – – 297 143 253 693
Non-current 980 181 4,885 392 493 6,931
1 January 2019 798 243 4,457 722 628 6,848

Utilised (93) (25) (171) (1) (118) (408)
Released – (8) (46) (195) (18) (267)
Accretion 28 – 139 40 3 210
Assumed in business combination 25 44 – 80 – 2 126
Additions 153 19 419 36 151 778
Impact of adoption of IFRS 16 – – – (8) – (8)
Reclassification to held for sale 15 – – (45) – (7) (52)
28 (1) 14 1 (8) 34
movements
31 December 2019 958 228 4,847 595 633 7,261
Current – 10 239 98 142 489
Non-current 958 218 4,608 497 491 6,772
1 As at 31 December 2019, provisions were restated by $530 million to reflect reclassification of uncertain tax provisions to current ($410 million) and deferred tax liabilities ($120 million).
POST-RETIREMENT EMPLOYEE BENEFITS

The provision for post-retirement employee benefits includes pension plan liabilities of $504 million (2019: $446 million) and post-
retirement medical plan liabilities of $476 million (2019: $512 million), see note 23.
OTHER EMPLOYEE ENTITLEMENTS

The employee entitlement 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.
REHABILITATION COSTS
Rehabilitation provision represents the accrued cost 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 (2019: 24 years).
As at 31 December 2020, 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 1.6% (2019: 1.8%), South African rand 3.6%
(2019: 3.8%), Australian dollar 2.3% (2019: 2.5%), Canadian dollar 1.7% (2019: 2.0%), and Chilean peso 2.6% (2019: 2.8%).

57
continued
22. Provisions (including post-retirement benefits) continued
The effect of decreasing the discount rates used by 0.5% would result in an increase in the overall rehabilitation provision by
$426 million, with a resulting movement of $348 million in property, plant and equipment and $78 million in the statement of
income. In the following year, the depreciation expense would increase by some $15 million, with an opposite direction interest
expense adjustment of $7 million. The resulting net impact in the statement of income would be a decrease of $8 million, eventually
netting to $Nil over the weighted average settlement date of the provision.
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.
OTHER
Other comprises provisions for possible demurrage, mine concession and construction related claims.
23. Personnel costs and employee benefits
Total personnel costs, which include salaries, wages, social security, other personnel costs and share-based payments, incurred
for the years ended 31 December 2020 and 2019, were $5,403 million and $5,231 million, respectively. Personnel costs related to
consolidated industrial subsidiaries of $3,944 million (2019: $4,035 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 $122 million in 2020 (2019: $141 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.
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 65% of the present value of 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.

58

continued
23. Personnel costs and employee benefits continued
The movement in the defined benefit pension and post-retirement medical plans over the year is as follows:
Defined benefit pension plans

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 (gains)/losses 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 11 – (40)
Pension deficits 22 476 504
The actual return on plan assets in respect of defined benefit pension plans amounted to a gain of $273 million (2019: $396 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 to 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
$121 million. Future funding requirements and contributions are reviewed and adjusted on an annual basis.

59
continued

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 2019 405 2,651 (2,299) 352
Current service cost 7 52 – 52
Past service cost – plan amendments (1) (5) – (5)
Settlement of pension plan disposal – (86) 85 (1)
Interest expense/(income) 21 93 (83) 10
Total expense recognised in consolidated statement
of income 27 54 2 56
Gain on plan assets, excluding amounts included
in interest expense – net – – (207) (207)
Gain from change in demographic assumptions – (2) – (2)
Loss from change in financial assumptions 39 256 – 256
Loss from actuarial experience 1 12 – 12
Actuarial losses/(gains) recognised in consolidated
statement of comprehensive income 40 266 (207) 59
Employer contributions – – (72) (72)
Employee contributions – 1 (1) –
Benefits paid directly by the Company (21) (8) 8 –
Benefits paid from plan assets – (153) 153 –
Net cash (outflow)/inflow (21) (160) 88 (72)
Acquisition of business 25 44 25 (25) –
Exchange differences 17 115 (106) 9
31 December 2019 512 2,951 (2,547) 404
Of which:
Pension surpluses 11 – (42)
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 2020 and 2019. The net liability of any of the Group’s defined benefit plans outside of Canada as at
31 December 2020 does not exceed $92 million (2019: $108 million).

60

continued
2020
US$ million Canada Other Total
Post-retirement medical plans
Present value of defined benefit obligation 415 61 476
of which: amounts owing to active members 142 11 153
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)
Weighted average duration of defined benefit obligation – years 13 16 14
2019
US$ million Canada Other Total
Post-retirement medical plans
Present value of defined benefit obligation 443 69 512
of which: amounts owing to pensioners 303 56 359
Present value of defined benefit obligation 1,967 984 2,951
of which: amounts owing to non-active members 24 188 212
of which: amounts owing to pensioners 1,418 343 1,761
Fair value of plan assets (1,882) (665) (2,547)
Net defined benefit liability at 31 December 2019 85 319 404
Of which:
Pension surpluses (40) (2) (42)
Weighted average duration of defined benefit obligation – years 12 17 14
Estimated future benefit payments of the Canadian plans, which reflect expected future service but exclude plan expenses, up until
2030 are as follows:
Post-retirement Defined benefit

US$ million medical plans pension plans Total
2021 19 137 156
2022 19 106 125
2023 19 106 125
2024 19 149 168
2025 19 102 121
2026-2030 91 502 593
Total 186 1,102 1,288

61
continued
The plan assets consist of the following:
2020 2019
Non-active Non-active
Active market market Active market market
Cash and short-term investments 24 21 15 19
Fixed income 844 213 900 185
Equities 979 – 960 –
Other 393 200 296 172
Total 2,240 434 2,171 376
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

2020 2019 2020 2019
Discount rate 3.6% 3.9% 2.2% 2.7%
Future salary increases – – 2.6% 2.6%
Future pension increases – – 0.4% 0.4%
Ultimate medical cost trend rate 4.6% 4.5% – –
Mortality assumptions are based on the latest available standard mortality tables for the individual countries concerned. As at
31 December 2020, these tables imply expected future life expectancy, for employees aged 65, 16 to 23 years for males (2019: 16 to 24)
and 20 to 25 years for females (2019: 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.

62

continued
The sensitivity of the defined benefit obligation to changes in principal assumptions as at 31 December 2020 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 (33) (200) (233)
Decrease by 50 basis points 37 219 256
Rate of future salary increase
Increase by 100 basis points – 41 41
Decrease by 100 basis points – (39) (39)
Rate of future pension benefit increase
Increase by 100 basis points – 65 65
Decrease by 100 basis points – (58) (58)
Medical cost trend rate
Increase by 100 basis points 60 – 60
Decrease by 100 basis points (47) – (47)
Life expectancy
Increase in longevity by one year 14 77 91
24. Accounts payable

Financial liabilities at amortised cost
Trade payables 8,021 7,099
Margin calls received1 1,033 310
Associated companies 1,209 1,501
Other payables and accrued liabilities 1,844 1,776
Financial liabilities at fair value through profit and loss
Trade payables containing provisional pricing features 28 11,264 14,808
Advances settled in product 289 240
Other tax and related payables 378 459
Total 24,038 26,193
1 Includes $988 million (2019: $263 million) of cash collateral receipts under margin arrangements related to cross currency swaps held to hedge non-U.S. dollar denominated bonds.
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
2020, 10% (2019: 2%) of total trade payables of $19,285 million (2019: $21,907 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.

63
continued
25. Acquisition and disposal of subsidiaries and other entities
2020 ACQUISITIONS
In 2020, there were no material acquisitions of subsidiaries.
2019 ACQUISITIONS
In 2019, Glencore acquired a 75% controlling interest in Chevron South Africa Proprietary Limited and a 100% interest in Chevron
Botswana Proprietary Limited (together “Astron Energy”), a 42.9% additional interest in Polymet Mining Corp (“Polymet”) and
increased its interest in Ulan and Hail Creek.
The net cash used in the acquisition of subsidiaries and the provisional fair value of assets acquired and liabilities assumed on the
acquisition date are detailed below:
US$ million Astron Energy Polymet Ulan Hail Creek Other Total
Non-current assets
Property, plant and equipment 1,013 420 134 40 16 1,623
Intangible assets 335 24 – – 12 371
Advances and loans1 7 13 – – 1 21
1,355 457 134 40 29 2,015
Current assets
Inventories 584 – 3 3 – 590
Accounts receivable1 294 2 8 3 – 307
Cash and cash equivalents 50 6 1 1 1 59
928 8 12 7 1 956
Non-controlling interest (260) (111) – – – (371)
Borrowings (151) (1) – – (2) (154)
Deferred tax liabilities (199) – – – (4) (203)
Provisions including post-retirement benefits (48) (63) (5) (2) – (118)
(398) (64) (5) (2) (6) (475)
Current liabilities
Borrowings (130) – – – – (130)
Accounts payable (487) (7) (17) (5) (1) (517)
Provisions (3) (4) – (1) – (8)
(620) (11) (17) (6) (1) (655)
Total fair value of net assets acquired 1,005 279 124 39 23 1,470
Less: cash and cash equivalents acquired (50) (6) (1) (1) (1) (59)
Less: amounts previously recognised as
exchangeable loan (1,005) – – – – (1,005)
Less: amounts previously recognised as
investments – (36) – – (4) (40)
Less: amounts previously recognised as non-
current loan – (243) – – – (243)
Net cash used in acquisition of subsidiaries (50) (6) 123 38 18 123
Acquisition related costs – – 6 – – 6
1 There is no material difference between the gross contractual amounts for advances and loans and accounts receivable and their fair value.
Astron Energy
On 6 October 2017, Glencore entered into an agreement with Off the Shelf Investments Fifty Six (RF) Proprietary Limited (“OTS”) to
acquire from OTS (i) a 75% stake in Chevron South Africa Proprietary Limited (Chevron SA) and certain related interests and (ii) the
entire issued share capital of Chevron Botswana Proprietary Limited (together the “Astron Energy”) following closing of OTS’s
exercise of its pre-emptive right to acquire Astron Energy from the Chevron group. OTS’s acquisition from Chevron closed on
1 October 2018, at which time Glencore advanced $1,044 million to OTS under an exchangeable loan arrangement. On 8 April 2019,
the loan was exchanged into the 75% stake in Chevron SA and the 100% stake in Chevron Botswana acquired by OTS. As Glencore
holds the majority of the voting shares, providing it the ability to appoint a controlling number of directors to the board, Glencore is
required to account for Astron Energy using the full consolidation method in accordance with IFRS 10. The acquisition accounting
for Astron Energy has now been finalised, with no adjustments to the previously reported provisional fair values.
If the acquisition had taken place effective 1 January 2019, the operation would have contributed additional revenue of $1,914 million
and additional attributable net loss of $1 million for the year ended 31 December 2019. From the date of acquisition, the operation
contributed $3,888 million of revenue and $71 million of attributable net loss for the year ended 31 December 2019.

64

continued
25. Acquisition and disposal of subsidiaries and other entities continued
Polymet
On 26 June 2019, Glencore concluded the acquisition (via a rights issue) of an additional 42.9% interest in Polymet Mining Corp
(“Polymet”), a company in the early stages of developing the NorthMet polymetallic (copper, nickel and precious metals) deposit in
Minnesota for a total consideration of $243 million. Polymet is listed on the Toronto and New York stock exchanges. The
consideration was satisfied through Glencore’s participation in Polymet’s rights issue, in which the proceeds raised were used to
repay loans previously extended to Polymet by Glencore. As such, Glencore did not commit any new funds to Polymet. Following
the capital raise, Glencore’s voting interest increased from 28.8% to 71.7%.
As Glencore holds the majority of the voting rights, providing it the ability to appoint a controlling number of directors to the board,
Glencore is required to account for Polymet using the full consolidation method in accordance with IFRS 10.
Prior to acquisition, Glencore owned a 28.8% interest in Polymet which was accounted for as an associate. In accordance with IFRS 3:
Business Combinations, this equity interest is required to be revalued, at the date of acquisition, to its fair value with any resulting
gain or loss recognised in the statement of income. The fair value of the existing interest was determined to be $36 million, by
reference to the Polymet share price on the date of acquisition and as a result, a loss of $38 million was recognised in loss on
disposals and investments. The acquisition accounting for Polymet has now been finalised, with no adjustments to the previously
reported provisional fair values.
If the acquisition had taken place effective 1 January 2019, the operation would have contributed additional revenue of $Nil and
additional attributable net loss of $2 million for the year ended 31 December 2019. From the date of acquisition, the operation
contributed $Nil of revenue and attributable net loss of $3 million for the year ended 31 December 2019.
Ulan/Hail Creek
In January 2019, Glencore completed the acquisition of an additional 10% of Ulan and 2.7% of Hail Creek for a net consideration of
$124 million and $39 million respectively, increasing Glencore’s interest in Ulan and Hail Creek to 100% and 84.7%, respectively.

65
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
Current liabilities
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.

66

continued
2019 DISPOSALS
In 2019, Glencore disposed of its controlling interest in Terminales Portuarios Chancay S.A.. The carrying value of the assets and
liabilities over which control was lost and the net cash received from the disposal are detailed below:
Terminales
Portuarios
US$ million Chancay Others Total
Non-current assets
Property, plant and equipment 55 – 55
Intangible assets 33 – 33
Advances and loans 2 – 2
Deferred tax asset 1 – 1
91 – 91
Current assets
Accounts receivable 44 – 44
Cash and cash equivalents 1 – 1
45 – 45
Current liabilities
Accounts payable (1) (3) (4)
(1) (3) (4)
Carrying value of net assets disposed 135 (3) 132
Cash and cash equivalents received – (6) (6)
Retained interest recognised as investment (150) – (150)
Future consideration (11) (6) (17)
Net loss/(gain) on disposal (26) (15) (41)
Cash and cash equivalents received – 6 6

Less: cash and cash equivalents disposed (1) – (1)
Net cash received from disposal (1) 6 5
Terminales Portuarios Chancay

In April 2019, Glencore disposed of a 60% interest in Terminales Portuarios Chancay S.A., a Peruvian port, for cash consideration of
$11 million. Glencore is no longer able to unilaterally direct the key strategic, operating and capital decisions of Terminales Portuarios
Chancay S.A. 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 remaining share using the equity
method in accordance with IAS 28 (see note 10).

67
continued
26. 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 (negative outlook) from Moody’s and BBB+ (stable) from S&P.
DISTRIBUTION POLICY AND OTHER CAPITAL MANAGEMENT INITIATIVES

Glencore’s 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 year. The actual variable distribution component
(25% pay-out guidance) will reflect prevailing balance sheet position, market conditions and outlook and be confirmed annually in
respect of prior period’s cash flows. 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 and acknowledging the cyclical nature of the industry, in periods of strong earnings and cash generation the Board,
considering all relevant factors, 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 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.

68

continued
26. Financial and capital risk management continued
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 an unchanged consolidated VaR limit (one day 95% confidence level) of
$100 million representing less than 0.2% of total equity, which the Board reviews annually. Given H1 2020’s extreme implied market
volatility, together with statistically elevated commodity correlations and increased Glencore Carry Trade transactions, the Board
approved a temporary increase in the VaR limit to $120 million in May 2020. With markets having stabilized through June/July, the
original $100 million limit has been restored. There were no limit breaches during the year.
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.
Market risk VaR (one-day 95% confidence level) ranges and year-end positions were as follows:

Year-end position 33 18
Average during the year 39 27
High during the year 102 43
Low during the year 14 18
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 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, cobalt, 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 2020 would
decrease/increase by $112 million (2019: $126 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.

69
continued
To cater for the envisaged transition of interest rate hedging arrangements, which have an accelerated timetable, the Group has
agreed to align with the ISDA fall-back protocol. Therefore, all existing and new commercial and financial 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.
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 20). 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 28) (Note 28) maturity1
US$ million 2020 2019 2020 2019 2020 2019 2020 2019
Cross currency swap agreements
Cash flow hedges – currency risk
Eurobonds 2,907 1,777 1.14 1.11 164 6 – 4 2025
Sterling bonds 798 1,783 1.60 1.79 – – 126 454 2022
Swiss franc bonds 504 256 1.06 1.02 16 – – 4 2026
Fair value hedges – currency and interest
rate risk
Eurobonds 4,323 6,664 1.27 1.24 232 128 120 513 2024
Yen bonds 81 81 0.01 0.01 16 10 – – 2022
Sterling bonds 663 663 1.33 1.33 81 28 – – 2026
Swiss franc bonds 440 956 1.04 1.04 48 – – 2 2022
9,716 12,180 557 172 246 977
Interest rate swap agreements
Fair value hedges – interest rate risk
US$ bonds 5,250 5,670 – – 525 235 4 1 2025
14,966 17,850 1,082 407 250 978
1 Refer to note 20 for details.

70

continued
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
2020 3,381 2,123 1,823 1,970 1,305 10,602
2019 3,099 2,804 1,987 2,688 1,909 12,487
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 20) hedge adjustments
US$ million 2020 2019 2020 2019
Foreign exchange and interest rate risk
Eurobonds 4,372 6,213 184 154
Yen bonds 97 92 – –
Swiss franc bonds 486 957 5 1
Sterling bonds 724 672 45 12
US$ bonds 5,702 5,850 489 213
11,381 13,784 723 380
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 5.1% (2019: 4.7%) of its
trade receivables (on a gross basis taking into account credit enhancements) or accounting for more than 3.1% of its revenues over
the year ended 31 December 2020 (2019: 3.5%)(see notes 3 and 13).
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 27) and physically-settled advances (see notes 11 and 13).

71
continued
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 prices beyond three months, with the main exception being coal, where longer-term fixed
price contracts are relatively common, 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 (2019: $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, 11, 20, 21 and 24).
As at 31 December 2020, Glencore had available committed undrawn credit facilities and cash amounting to $10,259 million
(2019: $10,141 million), refer to Other reconciliations section. The maturity profile of Glencore’s financial liabilities based on the
contractual terms is as follows:
2020
Borrowings excluding lease liabilities 8,887 6,566 3,690 9,077 7,739 35,959
Expected future interest payments 1,993 724 524 642 846 4,729
Lease liabilities – undiscounted 1,013 267 235 426 593 2,534
Accounts payable – – – – 23,371 23,371
Other financial liabilities 336 – – – 4,628 4,964
Total 12,229 7,557 4,449 10,145 37,177 71,557
Current assets 43,212 43,212
2019
Borrowings excluding lease liabilities 8,294 6,343 4,000 9,272 7,492 35,401
Expected future interest payments 2,586 866 613 834 925 5,824
Lease liabilities – undiscounted 618 289 239 385 569 2,100
Accounts payable – – – – 25,494 25,494
Other financial liabilities 379 – – – 3,722 4,101
Total 11,877 7,498 4,852 10,491 38,202 72,920
Current assets 41,410 41,410

72

continued
27. 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 $37,479 million (2019: $37,043 million) of borrowings, the fair value of which at 31 December 2020
was $38,672 million (2019: $37,670 million) based on observable market prices applied to the borrowing portfolio (a Level 2 fair value
measurement). Presentation of prior period balances relating to financial derivatives has been restated to reflect their appropriate
classification as either current or non-current, in accordance with contractual maturities. As a result, $428 million (2018: $252 million)
was reclassified from other financial assets to non-current other financial assets and $850 million (2018: $1,091 million) was
reclassified from other financial liabilities to non-current other financial liabilities as of 31 December 2019 and 31 December 2018
respectively.
2020 Amortised
US$ million cost FVTPL1 FVTOCI2 Total
Assets
Other investments3 – 86 1,647 1,733
Non-current other financial assets (see note 28) – 1,106 – 1,106
Advances and loans 994 404 – 1,398
Accounts receivable 7,696 4,598 – 12,294
Other financial assets (see note 28) – 1,998 – 1,998
Cash and cash equivalents 1,498 – – 1,498
Total financial assets 10,188 8,192 1,647 20,027
Liabilities
Borrowings 37,479 – – 37,479
Non-current other financial liabilities (see note 28) 100 588 – 688
Accounts payable 12,107 11,264 – 23,371
Other financial liabilities (see note 28) – 4,276 – 4,276
Total financial liabilities 49,686 16,128 – 65,814
1 FVTPL – Fair value through profit and loss.
2 FVTOCI – Fair value through other comprehensive income.
3 Other investments of $1,691 million are classified as Level 1 measured using quoted market prices with the remaining balance of $41 million being investments in private companies,
classified as Level 2 measured using discounted cash flow models.
2019 Amortised
US$ million cost FVTPL1 FVTOCI2 Total
Assets
Other investments3 – 97 2,290 2,387
Non-current other financial assets (see note 28) – 453 – 453
Advances and loans 907 161 – 1,068
Accounts receivable 6,654 6,577 – 13,231
Other financial assets (see note 28) – 1,953 – 1,953
Cash and cash equivalents 1,899 – – 1,899
Total financial assets 9,460 9,241 2,290 20,991
Liabilities
Borrowings 37,043 – – 37,043
Non-current other financial liabilities (see note 28) 98 1,131 – 1,229
Accounts payable 10,686 14,808 – 25,494
Other financial liabilities (see note 28) – 2,872 – 2,872
Total financial liabilities 47,827 18,811 – 66,638
1 FVTPL – Fair value through profit and loss.
2 FVTOCI – Fair value through other comprehensive income.
3 Other investments of $2,345 million are classified as Level 1 measured using quoted market prices with the remaining balance of $42 million being investments in private companies,
classified as Level 2 measured using discounted cash flow models.

73
continued
27. 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 2020 and 2019 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
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 1,199 3,096
Derivative liabilities1 (12,941) 9,678 (3,263) 246 2,389 (628) (1,365) (4,628)
1 Presented within current other financial assets and current 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
2019 Gross Amounts Net Financial Financial Net to netting of financial
US$ million amount offset amount instruments collateral amount agreements position
Derivative assets1 7,334 (6,190) 1,144 (365) (275) 504 1,237 2,381
Derivative liabilities1 (7,959) 6,190 (1,769) 365 1,135 (269) (1,953) (3,722)
1 Presented within current and non-current other financial assets and current and non-current 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 when both elect to
settle on a net basis. In the absence of such an election, 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.
28. 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.

74

continued
28. 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 liabilities as at 31 December 2020 and
2019. Other assets and liabilities which are measured at fair value on a recurring basis are marketing inventories, other investments
and certain advances and loans. There are no non-recurring fair value measurements.
FINANCIAL ASSETS
2020
US$ million Level 1 Level 2 Level 3 Total
Accounts receivable – 4,468 130 4,598
Deferred consideration (Note 11) – – 302 302
Commodity related contracts
Futures 107 75 – 182
Options 19 13 – 32
Swaps 142 249 – 391
Physical forwards – 916 258 1,174
Financial contracts
Cross currency swaps – 219 – 219
Current other financial assets 268 1,472 258 1,998
Non-current other financial assets
Foreign currency and interest rate contracts – 569 – 569
Purchased call options over Glencore shares1 – 8 – 8
Non-current other financial assets – 1,106 – 1,106
Total 268 7,046 690 8,004
1 Call options over the Company’s shares in relation to conversion rights of the $500 million non-dilutive convertible bond, due in 2025. See note 20.
2019
Accounts receivable – 6,540 37 6,577
Deferred consideration (Note 11) – – 45 45
Futures 377 80 – 457
Options 14 63 – 77
Swaps 80 122 – 202
Financial contracts
Current other financial assets 471 1,165 317 1,953
Non-current other financial assets
Purchased call options over Glencore shares1 – 25 – 25
Non-current other financial assets – 453 – 453
Total 471 8,158 399 9,028

75
continued
FINANCIAL LIABILITIES
2020
Accounts payable – 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 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 – 360 228 588
Total 2,909 12,739 480 16,128
2019
Accounts payable – 14,808 – 14,808
Other financial liabilities
Futures 1,141 151 – 1,292
Options 85 11 – 96
Swaps 90 179 – 269
Financial contracts
Current other financial liabilities 1,316 1,348 208 2,872
Non-current other financial liabilities
Non-discretionary dividend obligation1 – – 161 161
Option over non-controlling interest in Ale – – 36 36
Deferred consideration – – 59 59
Embedded call options over Glencore shares2 – 25 – 25
Non-current other financial liabilities – 875 256 1,131
Total 1,316 17,031 464 18,811
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 12 years as at 31 December 2020) and has no fixed repayment date and is not cancellable
within 12 months.
2 Embedded call option bifurcated from the 2025 convertible bond. See note 20.

76

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

US$ million Receivable forwards Options Other Level 3
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
Deferred consideration 133 – – 260 393
Realised (40) (41) – – (81)
31 December 2020 130 6 – 74 210
1 January 2019 7 305 (3) (239) 70

Total gain recognised in revenue – 154 – – 154
Total loss recognised in cost of goods sold – (226) – – (226)
Non-discretionary dividend obligation – – – 27 27
Option over non-controlling interest – – – 4 4
Deferred consideration 43 – – (3) 40
Realised (13) (124) 3 – (134)
31 December 2019 37 109 – (211) (65)
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.
Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period.
The following table provides information about how the fair values of these financial assets and financial liabilities are determined,
in particular, the valuation techniques and inputs used.

77
continued
FAIR VALUE OF FINANCIAL ASSETS/FINANCIAL LIABILITIES

Futures – Level 1 Assets 107 377
Liabilities (2,652) (1,141)
Valuation techniques and key inputs: Quoted bid prices in an active market
Significant unobservable inputs: None
Futures – Level 2 Assets 75 80
Liabilities (264) (151)
Valuation techniques and key inputs: Discounted cash flow model
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.
Options – Level 1 Assets 19 14
Options – Level 2 Assets 13 63
Swaps – Level 1 Assets 142 80
Swaps – Level 2 Assets 249 122

78

continued

Physical Forwards – Level 2 Assets 916 898
captures the time value of money, and counterparty credit considerations, such as history of
non-performance, collateral held and current market developments, as required.
Physical Forwards – Level 3 Assets 258 317
Significant 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 significant 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.
Cross currency swaps – Level 2 Assets 748 175
Foreign currency and interest rate contracts – Level 2 Assets 569 255
Call options over Glencore shares – Level 2 Assets 8 25
Valuation techniques and key inputs: Option pricing model
– Current price of Glencore shares;
– Strike price;
– Maturity date of the underlying convertible debt security;
– Risk-free rate; and
– Volatility.

79
continued

Accounts receivable and payable – Level 2 Assets 4,468 6,540
Liabilities (11,264) (14,808)
Comprised of trade receivables/payables containing an embedded commodity
derivative, which are designated and measured at fair value through profit and
loss until final settlement.
Inputs include observable quoted commodity 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.
Deferred consideration (Mototolo) – Level 3 Assets 391 82
Liabilities – –
Significant observable inputs: – Forecast commodity prices;
– Discount rates using weighted average cost
of capital methodology;
– Exchange rates;
The valuation remains sensitive to price and a 10% increase/decrease in commodity price
assumptions would result in an $48 million adjustment to the current carrying value.
Deferred consideration (Orion) – Level 3 Assets 41 –
Liabilities – –
Significant observable inputs: – Estimated production plan;
– Forecast commodity prices;
The valuation remains sensitive to commodity price assumptions and a 10% increase/decrease
in gold price would result in a $14 million positive adjustment to the current carrying value of
the asset, while a 10% decrease in gold price would result in a $21 million negative adjustment
Non-discretionary dividend obligation – Level 3 Assets – –
Valuation techniques: Discounted cash flow model
Significant observable inputs: – Forecast commodity prices;
– 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 valuation remains sensitive to price and a
10% increase/decrease in commodity price assumptions would result in an $105 million
adjustment to the current carrying value.
Option over non-controlling interest in Ale – Level 3 Assets – –
Significant unobservable inputs: The resultant liability is the value of the remaining minority stake in the subsidiary, measured
as the higher value of the acquisition date valuation of the shares, and a discounted future
earnings based valuation. The valuation is additionally sensitive to movement in the spot
exchange rates between the Brazilian Real and US Dollar.

80

continued
29. 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 18
Audit-related assurance services1 2 3
Total audit and related assurance fees 24 24
Transaction services 1 –
Taxation compliance services 1 2
Other taxation advisory services 1 2
Other assurance services2 1 2
Total non-audit fees 4 6
Total professional fees 28 30
1 Audit-related assurance services primarily related to interim reviews of the Group’s half-year accounts and quarterly accounts of the Group’s publicly listed subsidiaries.
2 Other assurance services primarily comprise assurance in respect of certain aspects of the Group’s sustainability reporting.
30. 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 2020, $859 million (2019: $1,240 million), of which 87% (2019: 89%) 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 2020,
$128 million (2019: $126 million) of such development expenditures are to be incurred, of which 27% (2019: 37%) 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 2020, $6,334 million (2019: $9,628 million)
of procurement and $4,138 million (2019: $3,953 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 pertaining 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
($446 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. In addition, Glencore has agreed to increase the level of BEE shareholding in Astron Energy from 25% to 35%
in tranches up to 2026 which will include a minimum additional 3% held by qualifying employee stock ownership plans in 2021.

81
continued
31. Contingent liabilities
The amount of corporate guarantees in favour of third parties as at 31 December 2020 was $Nil (2019: $Nil). Also see note 10. 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 2020 and
2019, 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.
The Group is subject to various legal and regulatory proceedings as detailed below. The facts and circumstances of these
proceedings are assessed on a regular basis to determine if the criteria for recognising a provision in accordance with IAS 37 are met.
At 31 December 2020 and 31 December 2019, the Group has concluded that the recognition criteria have not been met, as such no
liability has been recognised in relation to these matters in the consolidated statement of financial position at the end of the
reporting periods. The nature of these contingent liabilities is disclosed below.
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 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 is continuing to cooperate fully with the various authorities, including through reporting to those authorities facts
relevant to their investigations. The investigations are complex and dynamic including in relation to scope. The timing and outcome
of the various investigations remain uncertain.
At 31 December 2020, taking account of all available evidence, the Committee concluded that it is not probable that a present
obligation existed at the end of the reporting period for the above regulatory and enforcement proceedings. Consequently, 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 and any change in their scope is not possible to predict or estimate.
OTHER LEGAL PROCEEDINGS

The Group was named in a securities class action suit in the United States District Court of New Jersey in connection with the
various regulatory and enforcement authorities investigations. The District Court issued an order dismissing the suit on 31 July 2020.
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.

82

continued
31. Contingent liabilities continued
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.
32. 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 11, 13 and 24).
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 2020, sales and purchases with associates and joint ventures amounted to
$2,710 million (2019: $3,727 million) and $5,033 million (2019: $4,923 million) respectively.
REMUNERATION OF KEY MANAGEMENT PERSONNEL

Glencore’s key management personnel are the members of the Board of Directors, CEO, CFO and the 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 $19 million (2019:
$18 million). There were no other long-term benefits or share-based payments to key management personnel (2019: $Nil). Further
details on remuneration of Directors are set out in the Directors’ remuneration report on page 100.
33. Principal subsidiaries with material non-controlling interests
Non-controlling interest is comprised of the following:

Volcan (136) 1,217
Kazzinc 1,362 1,298
Koniambo (4,098) (3,607)
Other1 (363) 54
Total (3,235) (1,038)
1 Other comprises various subsidiaries in which no individual balance attributable to non-controlling interests is material.
2020 KML MINORITY SHARE ACQUISITION AND DELISTING

On 3 June 2020, Glencore completed the acquisition of the remaining 0.5% minority interest in Katanga Mining Limited (“KML”), an
entity listed on the Toronto Stock Exchange which in turn owns a 75% interest in Kamoto Copper Company (“KCC”) for $39 million
(Canadian $56 million). As a result, KML is now a wholly-owned subsidiary of the Group and an amount of $18 million was recognised
directly in ‘other equity reserves’ in accordance with IFRS 10. Following such acquisition, KML has been delisted from the Toronto
Stock Exchange and is no longer considered a “reporting issuer” under applicable Canadian securities legislation.
The remaining non-controlling interest balance of $232 million (2019: $159 million) represents the 25% interest in KCC held by La
Générale des Carrières et des Mines (“Gécamines”).

83
continued
33. 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 2020, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below.
US$ million Kazzinc Koniambo Volcan

31 December 2020
Non-current assets 4,407 1,594 1,793
Current assets 1,167 307 293
Total assets 5,574 1,901 2,086
Non-current liabilities 737 12,719 1,350
Current liabilities 333 91 348
Total liabilities 1,070 12,810 1,698
Net assets 4,504 (10,909) 388
Equity attributable to owners of the Company 3,142 (6,811) 524
Non-controlling interest 1,362 (4,098) (136)
Non-controlling interest % 30.3% 51.0% 76.7%
2020
Revenue 3,032 239 547
Expenses (2,418) (1,201) (2,307)
Net profit/(loss) for the year 614 (962) (1,760)
Profit/(loss) attributable to owners of the Company 428 (471) (413)
Profit/(loss) attributable to non-controlling interests 186 (491) (1,347)
Total comprehensive income/(loss) for the year 614 (962) (1,760)
Dividends paid to non-controlling interests (120) – –
Net cash inflow/(outflow) from operating activities 1,010 (194) 129
Net cash outflow from investing activities (388) (36) (117)
Net cash (outflow)/inflow from financing activities (597) 233 67
Total net cash inflow 25 3 79
US$ million Kazzinc Koniambo Volcan

31 December 2019
Non-current assets 4,229 1,648 4,230
Current assets 1,133 369 255
Total assets 5,362 2,017 4,485
Non-current liabilities 785 11,857 1,778
Current liabilities 287 106 555
Total liabilities 1,072 11,963 2,333
Net assets 4,290 (9,946) 2,152
Equity attributable to owners of the Company 2,992 (6,339) 935
Non-controlling interest 1,298 (3,607) 1,217
Non-controlling interest % 30.3% 51.0% 76.7%
2019
Revenue 2,917 315 756
Expenses (2,458) (1,159) (1,259)
Net profit/(loss) for the year 459 (844) (503)
Profit/(loss) attributable to owners of the Company 320 (414) (117)
Profit/(loss) attributable to non-controlling interests 139 (430) (386)
Other comprehensive income attributable to owners of the Company – – –
Other comprehensive income attributable to non-controlling interests – – –
Total comprehensive income/(loss) for the year 459 (844) (503)
Dividends paid to non-controlling interests (196) – –
Net cash inflow/(outflow) from operating activities 750 (172) 178
Net cash outflow from investing activities (427) (39) (172)
Net cash (outflow)/inflow from financing activities (325) 219 (33)
Total net cash (outflow)/inflow (2) 8 (27)

84

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

incorporation 2020 2019 Main activity
Principal subsidiaries
Industrial activities
Minera Alumbrera Limited1 Antigua – 50.0 Copper production
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 73.1 Copper production
Polymet Mining Corp. Canada 71.6 71.7 Copper production
Kamoto Copper Company SA2 DRC 75.0 74.6 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.3 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. Spain 100.0 100.0 Zinc production
Volcan Companja Minera S.A.A.4 Peru 23.3 23.3 Zinc production
AR Zinc Group Argentina 100.0 100.0 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 In 2019, this investment was treated as a subsidiary as the Group was entitled to elect the chairman of the Board who has the casting vote where any vote is split equally between the
four board positions. Minera Alumbrera Limited’s principal place of business is Argentina. The investment was disposed during 2020, refer to note 25.
2 Refer to note 33.
3 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.
4 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).

85
continued
34. Principal operating, finance and industrial subsidiaries and investments continued

Industrial activities
Oakbridge Pty Limited Australia 83.0 78.0 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) Ltd5 South Africa 49.9 49.9 Coal production
Umcebo Mining (Pty) Ltd6 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 South Africa South Africa 75.0 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
ALE Combustiveis Brazil 88.0 80.3 Oil distribution
Topley Corporation B.V.I. 100.0 100.0 Ship owner
Glencore Canada Financial Corp Canada 100.0 100.0 Finance
Chemoil Energy Limited Hong Kong – 100.0 Oil storage and bunkering
Glencore Finance (Europe) Limited Jersey 100.0 100.0 Finance
Glencore Capital Finance DAC Ireland 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
5 Although Glencore holds less than 50% of the voting rights, it 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.
6 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.

86

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

Principal joint ventures7
Viterra Group (formerly Glencore Agriculture Limited) Jersey 49.9 49.9 Agriculture business
Clermont Coal Joint Venture8 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
arrangement9
Wandoan Joint Venture Australia 75.0 75.0 Coal exploration
Bulga Joint Venture Australia 72.6 68.3 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
Rolleston Joint Venture Australia 75.0 75.0 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
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
Principal associates
Carbones del Cerrejon LLC Colombia 33.3 33.3 Coal production
Port Kembla Coal Terminal Limited Australia 13.9 13.0 Coal terminal
Newcastle Coal Shippers Pty Ltd Australia 35.7 34.7 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 Company10 USA 47.0 47.0 Aluminium production
PT CITA Mineral Investindo Tbk Indonesia 30.2 18.0 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 Company Canada 26.3 25.5 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 – Copper production
Other investments
EN+ GROUP PLC11 Russia 10.6 10.6 Aluminium production
OAO NK Russneft12 Russia 25.0 25.0 Oil production
7 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.
8 The Group’s effective 37.1% economic interest in Clermont Coal is held through GS Coal Pty Ltd, a 50:50 joint venture with Sumitomo Corporation.
9 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.
10 Represents the Group’s economic interest in Century, comprising 42.9% (2019: 42.9%) voting interest and 4% non-voting interest (2019:4%). Century is publicly traded on NASDAQ
under the symbol CENX.
11 In January 2019, Glencore agreed to exchange its interest in United Company Rusal plc into a 10.6% interest in EN+ GROUP PLC.
12 Although the Group holds more than 20% of the voting rights in Russneft, it is unable to exercise significant influence over the financial and operating policy decisions of Russneft.

87
SIMPLICITY
Mariya works in HR, where she says that the problems that need
to be dealt with are rarely straightforward. However, she has a
philosophy that helps her
“In order to solve complex problems, I look

for simple solutions. Simpler solutions are
Mariya Kuimova more beautiful.”
Human Resources Director –
Kazzinc, Kazakhstan
Learn more about our culture and how we work

towards simple solutions on www.glencore.com
ENTREPRENEURIALISM
Tanya joined Glencore in 2011 as an Underground Truck Operator,
and has progressed her career through a number of roles,
recently completing our Future Leaders Development Program.
What does being an entrepreneur mean to her?
“There needs to be someone who is always

Tanya Cambetis
thinking ‘Is there a better way to get the
same task done but in a way that is better
Operations Contract for our people, better for our business and
Coordinator – Glencore
Australia
just better overall’.”
Learn more about our culture and how we foster

entrepreneurialism on www.glencore.com
ADDITIONAL
INFORMATION
Alternative performance measures 219
Other reconciliations 226
Production by quarter –
Q4 2019 to Q4 2020 228
Resources and reserves 235
Shareholder information 243

ALTERNATIVE PERFORMANCE
MEASURES
Alternative
Alternative performance
performancemeasures
measures are
aredenoted
denotedby
bythe
thesymbol
symbol ◊◊
When
Whenassessing
assessing and
anddiscussing
discussing the
theGroup’s
Group’s reported
reportedfinancial
financial performance,
performance,financial
financial position
positionand
andcash
cashflows,
flows,Glencore
Glencoremakesmakes
reference
reference to Alternative performance measures (APMs), which are not defined or specified under the requirements of
to Alternative performance measures (APMs), which are not defined or specified under the requirements of IFRS,
IFRS,but
butare
are
derived
derivedfrom
from the
thefinancial
financial statements
statements prepared
preparedin inaccordance
accordance with
withIFRS.
IFRS. The
TheAPMs
APMs are
areconsistent
consistentwith
with how
how business
business performance
performance
is
is measured
measuredand
andreported
reportedwithin
withinthe
theinternal
internal management
managementreporting
reporting to
to the
theBoard
Boardand
andmanagement
managementand andassist
assistin
inproviding
providing
meaningful
meaningful analysis
analysis of
of the
theGroup’s
Group’s results
results both
both internally
internallyand
andexternally
externallyin
indiscussions
discussions with
withthe
thefinancial
financial analyst
analystand
andinvestment
investment
community.
community.
The
TheGroup
Groupuses
uses APMs
APMs to
to aid
aid the
the comparability
comparabilityof of information
informationbetween
betweenreporting
reporting periods
periods and
andsegments
segments and
andto
to aid
aidthe
the
understanding
understanding of of the
theactivity
activity taking
taking place
placeacross
across the
theGroup
Group byby adjusting
adjusting for
for items
items that
thatare
areof
of an
aninfrequent
infrequentnature
natureandandbyby
aggregating
aggregating or or disaggregating
disaggregating (notably
(notablyininthe
thecase
caseof of relevant
relevant material
material associates
associates and
andjoint
joint ventures
ventures accounted
accountedforfor on
onan
anequity
equity
basis)
basis) certain
certainIFRS
IFRSmeasures.
measures.APMs
APMs are
arealso
also used
usedto to approximate
approximatethe theunderlying
underlying operating
operating cash
cashflow
flow generation
generationofof the
theoperations
operations
(Adjusted
(AdjustedEBITDA).
EBITDA).
Investments
Investments inin the
theextractive
extractiveindustry
industryare
aretypically
typicallysignificant
significantand
andthe
theinitial
initial spend
spendgenerally
generallyoccurs
occurs over
over several
several years,
years,“upfront”,
“upfront”,
prior
prior to the operations generating cash. As a result, the investments are sometimes made with partners and an assessmentto
to the operations generating cash. As a result, the investments are sometimes made with partners and an assessment to
approximate
approximatethe theoperating
operating cash
cashflow
flow generation/pay-back
generation/pay-backof of the
theinvestment
investment(Adjusted
(AdjustedEBITDA)
EBITDA) is
is required.
required.Against
Against this
this backdrop,
backdrop,
the
the key
keyAPMs
APMs used
usedbybyGlencore
Glencore are
areAdjusted
AdjustedEBITDA,
EBITDA,Net Netfunding/Net
funding/Netdebt
debtand andthe
the disaggregation
disaggregationof of the
theequivalent
equivalent key
keyAPMs
APMs
of
of our
our relevant
relevantmaterial
material associates
associates and
andjoint
jointventures
ventures (“Proportionate
(“Proportionateadjustment”)
adjustment”) to to enable
enableaa consistent
consistent evaluation
evaluationofof the
thefinancial
financial
performance
performanceand andreturns
returns attributable
attributabletoto the
theGroup.
Group.
Adjusted
AdjustedEBITDA
EBITDA is
is aa useful
useful approximation
approximationof of the
theoperating
operating cash
cashflow
flow generation
generationbybyeliminating
eliminating depreciation
depreciationand
andamortisation
amortisation
adjustments.
adjustments.Adjusted
AdjustedEBITDA
EBITDA isis not
notaa direct
directmeasure
measureofof our
our liquidity,
liquidity,which
whichis
is shown
shown by
byour
our cash
cashflow
flow statement
statementand
and needs
needs to
tobe
be
considered
consideredin
inthe
thecontext
contextof of our
our financial
financial commitments.
commitments.
Proportionate
Proportionateadjustments
adjustments are are useful
useful to
to enable
enableaa consistent
consistent evaluation
evaluationof
of the
thefinancial
financial performance
performanceand andreturns
returns available
availableto
to the
the
Group,
Group, irrespective of the differing accounting treatments required to account for our minority/joint ownership interests of our
irrespective of the differing accounting treatments required to account for our minority/joint ownership interests of our
relevant
relevantmaterial
material investments.
investments.
Net
Netfunding
funding is
is an
anaggregation
aggregationofof IFRS
IFRSmeasures
measures (Borrowings
(Borrowings less
less cash
cashand
andcash
cashequivalents)
equivalents) and
andNet
Netdebt
debtisis Net
Netfunding
funding less
less
Readily
Readilymarketable
marketable inventories
inventories and
andprovides
provides aa measure
measureof of our
our financial
financial leverage
leverageand,
and,through
through Net
Netdebt
debtto
to Adjusted
AdjustedEBITDA
EBITDA
relationships,
relationships, provides
provides an
anindication
indicationofof relative
relativefinancial
financial strength
strengthand andflexibility.
flexibility.
APMs
APMs used
used by
byGlencore
Glencoremaymaynot
notbe
becomparable
comparablewith withsimilarly
similarlytitled
titledmeasures
measures and
and disclosures
disclosures by
byother
other companies.
companies.APMsAPMs have
have
limitations
limitations as
as an
ananalytical
analytical tool,
tool,and
andaa user
user of
of the
thefinancial
financial statements
statements should
shouldnot
notconsider
consider these
thesemeasures
measures ininisolation
isolationfrom,
from,or
or as
as aa
substitute for, analysis of the Group’s results of operations; and they may not be indicative of the Group’s historical operating
substitute for, analysis of the Group’s results of operations; and they may not be indicative of the Group’s historical operating results,results,
nor
nor are
arethey
theymeant
meantto to be
beaa projection
projectionor
or forecast
forecastof
of its
its future
futureresults.
results.
Listed
Listed below
below are
arethe
thedefinitions
definitions and
andreconciliations
reconciliations to
to the
theunderlying
underlying IFRS
IFRSmeasures
measures of
of the
the various
various APMs
APMs used
used by
bythe
theGroup.
Group.
Proportionate
Proportionate adjustment
adjustment
For
For internal
internal reporting
reporting and
andanalysis,
analysis,management
management evaluates
evaluates the
the performance
performanceof of Antamina
Antamina copper/zinc
copper/zinc mine
mine(34%
(34% owned),
owned),Cerrejón
Cerrejón
coal mine (33% owned) and Collahuasi copper mine (44% owned) under the proportionate consolidation method
coal mine (33% owned) and Collahuasi copper mine (44% owned) under the proportionate consolidation method reflecting reflecting
Glencore’s
Glencore’s proportionate
proportionateshare
share of
of the
therevenues,
revenues,expenses,
expenses,assets
assets and
andliabilities
liabilities of
of these
theseinvestments.
investments.
In
InNovember
November 2017,
2017,Glencore
Glencoreincreased
increasedits
its voting
voting interest
interestin
inVolcan
Volcanto to 63%,
63%,but
butits
its total
total economic
economic interest
interestonly
onlyincreased
increased to to 23.3%.
23.3%.For
For
internal
internal reporting
reporting and
andanalysis,
analysis, management
managementevaluates
evaluates the
theperformance
performanceof of Volcan
Volcanunder
under the
theequity
equitymethod,
method,reflecting
reflecting the
theGroup’s
Group’s
relatively
relativelylow
low 23.3%
23.3% economic
economic ownership
ownershipin inthis
this fully
fullyring-fenced
ring-fencedlisted
listed entity,
entity,with
withitsits stand-alone,
stand-alone,independent
independentand andseparate
separatecapital
capital
structure.
structure. The
Theimpact
impactisis that
thatwewe reflect
reflect23.3%
23.3% ofof Volcan’s
Volcan’s net
netincome
incomein inthe
theGroup’s
Group’s Adjusted
AdjustedEBIT/EBITDA
EBIT/EBITDA and
anditsits consolidated
consolidated
results
results are
areexcluded
excludedfrom
from all
all other
other APM’s
APM’s including
including production
production data.
data.
The
TheViterra
Viterra joint
jointventure
ventureis is aa stand-alone
stand-alonegroup
groupwith
withaa fully
fullyindependent
independentcapital
capital structure,
structure,governance
governanceand andcredit
creditprofile,
profile,supporting
supporting
aa global
global business,
business,across
across many
manygeographies,
geographies,products
products andandactivities.
activities.Glencore’s
Glencore’s management
management evaluates
evaluates this
this investment’s
investment’s financial
financial
performance
performanceon onaa net
netreturn
returnbasis,
basis,as
as opposed
opposedto to an
anAdjusted
AdjustedEBITDA
EBITDA basis
basis and
andthus,
thus,the
thefinancial
financial results
results of
of Viterra
Viterra are
arepresented
presented
on
onaa basis
basis consistent
consistentwithwithits
its underlying
underlying IFRS
IFRS treatment
treatment(equity
(equity accounting).
accounting).
See
Seereconciliation
reconciliationofof revenue
revenueand
andrelevant
relevantmaterial
material associates’
associates’and
andjoint
jointventures’
ventures’Adjusted
AdjustedEBIT
EBIT to
to “Share
“Shareof
of net
netincome
incomefrom
from
associates
associates and
andjoint
jointventures”
ventures” below.
below.
Glencore
GlencoreAnnual
AnnualReport
Report2020
2020 88
88
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 124,137 194,188
Revenue – Industrial activities 41,453 42,743
Intersegment eliminations (20,803) (19,672)
Revenue – segmental 144,787 217,259
Proportionate adjustment material associates and joint ventures – revenue (2,996) (2,904)
Proportionate adjustment Volcan – revenue 547 756
Revenue – reported measure 142,338 215,111
Share of income from material associates and joint ventures

Associates’ and joint ventures’ Adjusted EBITDA 2,061 1,754
Depreciation and amortisation (683) (745)
Associates’ and joint ventures’ Adjusted EBIT 1,378 1,009
Impairment, net of tax1 (445) (435)

Net finance costs (56) 5
Income tax expense (524) (342)
(1,025) (772)
Share of income from relevant material associates and joint ventures 353 237
Share of income from other associates and joint ventures 91 (123)
Share of income from associates and joint ventures2 444 114
1 Represents an impairment of $445 million, net of taxes of $211 million (2019: $435 million, net of taxes of $213 million) relating to Cerrejón, resulting from lower API2 coal price
assumptions and reduced production estimates, including in relation to updated mine-life approval expectations.
2 Comprises share in earnings of $197 million (2019: losses of $58 million) from Marketing activities and share in earnings of $247 million (2019: $172 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.


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

Reported measures
Revenue 142,338 215,111
Cost of goods sold (138,640) (210,434)
Selling and administrative expenses (1,681) (1,391)
Share of income from associates and joint ventures 444 114
Dividend income 32 49
2,493 3,449
Adjustments to reported measures
Share of associates’ significant items 92 219
Share of associates’ significant items – Volcan – 73
Movement in unrealised inter-segment profit elimination 760 (468)
Proportionate adjustment material associates and joint ventures – net
finance, impairment and income tax expense 1,025 772
Proportionate adjustment Volcan – net finance, income tax expense
46 106
and non-controlling interests
Adjusted EBIT 4,416 4,151
Depreciation and amortisation 6,671 7,161
Proportionate adjustment material associates and joint ventures –
depreciation 683 745
Proportionate adjustment Volcan – depreciation (210) (456)
Adjusted EBITDA 11,560 11,601
Significant items
Significant items of income and expense which, due to their nature and 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 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)
1 See note 2 of the financial statements.
4 Tax credits 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 7 of the financial statements.
6 See Proportionate adjustment reconciliation above.

continued
Reconciliation of net significant items 2019

Gross
significant Non-controlling Significant Equity
US$ million charges interests’ share items tax holders’ share
Share of Associates' significant items1 (219) – – (219)
Share of significant items – Volcan (73) – – (73)
Movement in unrealised inter-segment profit elimination1 468 – (46) 422
Loss on disposals of non-current assets2 (43) – – (43)
Other expense – net3 (173) – – (173)
Tax significant items in their own right4 – – (435) (435)
(40) – (481) (521)
Impairments attributable to equity holders
Impairments5 (2,408) 286 232 (1,890)
Impairments – net, related to material associates and joint ventures6 (435) – – (435)
(2,843) 286 232 (2,325)
Total significant items (2,883) 286 (249) (2,846)
4 Tax expenses related to foreign exchange fluctuations ($12 million) and tax losses not recognised ($543 million), net of tax credits related to the recognition of temporary differences
arising from retrospective changes in tax restructuring regulations ($120 million), see note 7 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.

Loss attributable to equity holders of the Parent (1,903) (404)
Significant items 4,388 2,846
Income attributable to equity holders of the Parent pre-significant items 2,485 2,442
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
2020, $19,584 million (2019: $16,810 million) of inventories were considered readily marketable. This comprises $12,260 million (2019:
$10,516 million) of inventories carried at fair value less costs of disposal and $7,324 million (2019: $6,294 million) carried at the lower
of cost or net realisable value. Total readily marketable inventories includes $128 million (2019: $148 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.


continued
Net funding/net debt at 31 December 2020

Proportionate
adjustment
material Proportionate
Reported associates and adjustment Adjusted
US$ million measure joint ventures Volcan measure
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
Net funding/net debt at 31 December 2019

Proportionate
adjustment
US$ million measure joint ventures Volcan measure
Non-current borrowings 29,067 95 (576) 28,586
Current borrowings 7,976 31 (221) 7,786
Total borrowings 37,043 126 (797) 36,372
Less: cash and cash equivalents (1,899) (143) 36 (2,006)
Net funding 35,144 (17) (761) 34,366
Less: Readily marketable inventories (16,662) (148) – (16,810)
Net debt 18,482 (165) (761) 17,556
Adjusted EBITDA 11,601

Net debt to Adjusted EBITDA 1.51
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 488 438
Capital expenditure – Industrial activities 4,082 5,349
Capital expenditure – segmental 4,570 5,787
Proportionate adjustment material associates and joint ventures – capital expenditure (543) (609)
Proportionate adjustment Volcan – capital expenditure 117 190
Capital expenditure – reported measure 4,144 5,368

continued
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 purchases 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
2020 US$ million measure joint ventures Volcan measure
Purchase of property, plant and equipment (3,569) (513) 105 (3,977)
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)
Proportionate
adjustment
Purchase of property, plant and equipment (4,712) (603) 180 (5,135)
Proceeds from sale of property, plant and equipment 178 – (9) 169
Net purchase and sale of property, plant and equipment (4,534) (603) 171 (4,966)
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 distributions 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.
2020
Proportionate
adjustment
Cash generated by operating activities before working capital changes 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 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%


continued
Proportionate
adjustment
Cash generated by operating activities before working capital changes 10,346 – – 10,346
Addback EBITDA of relevant material associates and joint ventures – 1,754 (232) 1,522
Non-cash adjustments included within EBITDA – 7 6 13
Adjusted cash generated by operating activities before working
capital changes 10,346 1,761 (226) 11,881
Income taxes paid (2,301) (544) 31 (2,814)
Interest received 200 2 (1) 201
Interest paid (1,604) (8) 43 (1,569)
Dividends received from associates and joint ventures 942 (776) – 166
Funds from operations (FFO) 7,583 435 (153) 7,865
Net debt 17,556

FFO to net debt 44.8%

OTHER RECONCILIATIONS
AVAILABLE
AVAILABLE COMMITTED
COMMITTED LIQUIDITY
1
LIQUIDITY1
US$
US$million
million 2020
2020 2019
2019
Cash
Cashand
andcash
cashequivalents
equivalents––reported
reported 1,498
1,498 1,899
1,899
Proportionate
Proportionateadjustment
adjustment––cash
cashand
andcash
cashequivalents
equivalents (8)
(8) 107
107
Headline
Headlinecommitted
committedsyndicated
syndicatedrevolving
revolvingcredit
creditfacilities
facilities 14,625
14,625 14,425
14,425
Amount
Amountdrawn
drawnunder
undersyndicated
syndicatedrevolving
revolvingcredit
creditfacilities
facilities (4,766)
(4,766) (5,615)
(5,615)
Amounts
Amountsdrawn
drawnunder
underU.S.
U.S.commercial
commercialpaper
paperprogramme
programme (1,090)
(1,090) (675)
(675)
Total
Total 10,259
10,259 10,141
10,141
11 Presented
Presentedon
onan
anadjusted
adjustedmeasured
measuredbasis.
basis.
CASH
CASH FLOW
FLOW RELATED
RELATED ADJUSTMENTS
ADJUSTMENTS 2020
2020
Proportionate
Proportionate
adjustment
adjustment
material
Proportionate
Reported associates
Reported associatesand
and adjustment
adjustment Adjusted
Adjusted
US$
US$million
million measure
measure joint
jointventures
ventures Volcan
Volcan measure
measure
Funds
Fundsfrom
fromoperations
operations(FFO)
(FFO) 7,689
7,689 710
710 (74)
(74) 8,325
8,325
Working
Working capitalchanges
capital changes (4,010)
(4,010) (314)
(314) 66 (4,318)
(4,318)
Net
Netcash
cashreceived
receivedfromfromdisposal
disposalof ofsubsidiaries
subsidiaries (222)
(222) –– –– (222)
(222)
Purchase
Purchaseof ofinvestments
investments (122)
(122) –– –– (122)
(122)
Proceeds
Proceedsfromfromsale
saleofofinvestments
investments 135
135 –– –– 135
135
Purchase
Purchaseof ofproperty,
property,plant
plantand
andequipment
equipment (3,569)
(3,569) (513)
(513) 105
105 (3,977)
(3,977)
Proceeds
Proceeds from sale of property,plant
from sale of property, plantand
andequipment
equipment 52
52 44 –– 56
56
Margin
Marginreceipts
receiptsin inrespect
respectof offinancing
financingrelated
relatedhedging
hedgingactivities
activities 1,040
1,040 –– –– 1,040
1,040
Acquisition
Acquisitionof ofnon-controlling
non-controllinginterests
interestsin
insubsidiaries
subsidiaries (56)
(56) –– –– (56)
(56)
Return
Returnofofcapital/distributions
capital/distributionsto tonon-controlling
interests (127)
(127) –– –– (127)
(127)
Cash
Cash movement
movementin in net
netfunding
funding 810
810 (113)
(113) 37
37 734
734
CASH
CASH FLOW
FLOW RELATED
RELATED ADJUSTMENTS
ADJUSTMENTS 2019
2019
Proportionate
Proportionate
adjustment
adjustment
material
Proportionate
Reported associates
Reported associatesand
and adjustment
adjustment Adjusted
Adjusted
US$
US$million
million measure
measure joint
jointventures
ventures Volcan
Volcan measure
measure
Funds
Fundsfrom
fromoperations
operations(FFO)
(FFO) 7,583
7,583 435
435 (153)
(153) 7,865
7,865
Working
Working capitalchanges
capital changes 2,088
2,088 122
122 (35)
(35) 2,175
2,175
Net
Netcash
cashused
usedin inacquisitions
acquisitionsof ofsubsidiaries
subsidiaries (123)
(123) –– –– (123)
(123)
Net
Netcash
cashreceived
receivedfromfromdisposal
disposalofofsubsidiaries
subsidiaries 55 –– 11 66
Purchase of investments
Purchase of investments (125)
(125) –– –– (125)
(125)
Proceeds
saleofofinvestments
investments 119
119 –– –– 119
119
Purchase
Purchase of property,plant
of property, plantand
andequipment
equipment (4,712)
(4,712) (603)
(603) 180
180 (5,135)
(5,135)
Proceeds
saleofofproperty,
property,plant
plantand
andequipment
equipment 178
178 –– (9)
(9) 169
169
Margin
Marginpayments
paymentsin inrespect
respectofoffinancing
financingrelated
relatedhedging
hedgingactivities
activities 529
529 –– –– 529
529
Acquisition
Acquisitionof ofnon-controlling
interestsin
insubsidiaries
subsidiaries (24)
(24) –– –– (24)
(24)
Return
Returnof ofcapital/distributions
capital/distributionsto tonon-controlling
interests (305)
(305) –– –– (305)
(305)
Purchase of own shares
Purchase of own shares (2,318)
(2,318) –– –– (2,318)
(2,318)
Disposal
Disposalof ofown
ownshares
shares 66 –– –– 66
Distributions
Distributionspaidpaidtotoequity
equityholders
holdersofofthe
theParent
Parent (2,710)
(2,710) –– –– (2,710)
(2,710)
Cash
Cash movement
movementin in net
netfunding
funding 191
191 (46)
(46) (16)
(16) 129
129
Glencore
GlencoreAnnual
AnnualReport
Report2020
2020 95
95
OTHER RECONCILIATIONS
continued
RECONCILIATION OF TAX EXPENSE 2020

US$ million Total
Adjusted EBIT, pre-significant items 4,416
Net finance costs (1,453)
Adjustments for:
Net finance cost 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%
Pre-significant Significant Total

US$ million tax expense items tax1 tax credit
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.
RECONCILIATION OF TAX EXPENSE 2019

US$ million Total
Adjusted EBIT, pre-significant items 4,151
Net finance costs (1,713)
Adjustments for:
Net finance cost from material associates and joint ventures 5
Proportional adjustment and net finance costs – Volcan 82
Share of income from other associates pre-significant items (96)
Profit on a proportionate consolidation basis before tax and pre-significant items 2,429
Income tax expense, pre-significant items (369)
Adjustments for:
Tax expense from material associates and joint ventures (342)
Tax credit from Volcan (29)
Tax expense on a proportionate consolidation basis (740)
Applicable tax rate 30.5%
Total
Pre-significant Significant tax expense
US$ million tax expense items tax1
Tax expense on a proportionate consolidation basis 740 142 882
Adjustment in respect of material associates and joint ventures – tax (342) 213 (129)
Adjustment in respect of Volcan – tax (29) (106) (135)
Tax expense on the basis of the income statement 369 249 618
1 See table above.

PRODUCTION BY QUARTER –
Q4 2019 TO Q4 2020
Metals
Metalsand
andminerals
minerals
PRODUCTION
PRODUCTIONFROM
FROMOWN
OWNSOURCES
SOURCES––TOTAL
1
TOTAL1
Change
Change Change
Change
Q4
Q4 Q1
Q1 Q2
Q2 Q3
Q3 Q4
Q4 2020
2020vs
vs Q4
Q420
20vs
vs
2019
2019 2020
2020 2020
2020 2020
2020 2020
2020 2020
2020 2019
2019 2019
2019 Q4
Q419
19
%
% %%
Copper
Copper kt
kt 355.4
355.4 293.3
293.3 294.8
294.8 346.6
346.6 323.4
323.4 1,258.1
1,258.1 1,371.2
1,371.2 (8)
(8) (9)
(9)
Cobalt
Cobalt kt
kt 11.9
11.9 6.1
6.1 8.2
8.2 7.3
7.3 5.8
5.8 27.4
27.4 46.3
46.3 (41)
(41) (51)
(51)
Zinc
Zinc kt 268.3
kt 268.3 295.6
295.6 254.5
254.5 310.0
310.0 310.3
310.3 1,170.4
1,170.4 1,077.5
1,077.5 99 16
16
Lead
Lead kt
kt 60.2
60.2 61.7
61.7 66.2
66.2 66.4
66.4 65.1
65.1 259.4
259.4 280.0
280.0 (7)
(7) 88
Nickel
Nickel kt
kt 31.2
31.2 28.2
28.2 27.0
27.0 26.6
26.6 28.4
28.4 110.2
110.2 120.6
120.6 (9)
(9) (9)
(9)
Gold
Gold koz
koz 240
240 211
211 200
200 244
244 261
261 916
916 886
886 33 99
Silver
Silver koz
koz 8,285
8,285 7,778
7,778 6,407
6,407 9,035
9,035 9,546
9,546 32,766
32,766 32,018
32,018 22 15
15
Ferrochrome
Ferrochrome kt
kt 408
408 388
388 78
78 185
185 378
378 1,029
1,029 1,438
1,438 (28)
(28) (7)
(7)
Coal
Coal mt
mt 35.5
35.5 31.9
31.9 26.2
26.2 25.4
25.4 22.7
22.7 106.2
106.2 139.5
139.5 (24)
(24) (36)
(36)
Oil
Oil(entitlement
(entitlementinterest
interestbasis)
basis) kbbl
kbbl 1,880
1,880 1,806
1,806 806
806 748
748 584
584 3,944
3,944 5,518
5,518 (29)
(29) (69)
(69)
PRODUCTION
PRODUCTIONFROM
FROMOWN
OWNSOURCES
SOURCES––COPPER
COPPERASSETS
1
ASSETS1
Change
Change Change
Change
Q4
Q4 Q1
Q1 Q2
Q2 Q3
Q3 Q4
Q4 2020
2020vs
vs Q4
Q420
20vs
vs
2019
2019 2020
2020 2020
2020 2020
2020 2020
2020 2020
2020 2019
2019 2019
2019 Q4
Q419
19
%
% %%
African
AfricanCopper
Copper(Katanga,
(Katanga,Mutanda,
Mutanda,Mopani)
Mopani)
Katanga
Katanga Copper metal
Copper metal kt
kt 65.4
65.4 67.3
67.3 67.1
67.1 67.5
67.5 68.8
68.8 270.7
270.7 234.5
234.5 15
15 55
Cobalt 2
Cobalt2 kt
kt 6.2
6.2 5.3
5.3 7.2
7.2 6.4
6.4 5.0
5.0 23.9
23.9 17.1
17.1 40
40 (19)
(19)
Mutanda
Mutanda Copper
Coppermetal
metal kt
kt 18.0
18.0 –– –– –– –– –– 103.2
103.2 (100)
(100) (100)
(100)
Cobalt 2
Cobalt2 kt
kt 4.5
4.5 –– –– –– –– –– 25.1
25.1 (100)
(100) (100)
(100)
Mopani
Mopani Copper
Coppermetal
metal kt
kt –– –– 6.7
6.7 13.3
13.3 10.3
10.3 30.3
30.3 21.6
21.6 40
40 n.m.
n.m.
Copper
Copperininconcentrates
concentrates kt
kt 3.3
3.3 –– –– –– –– –– 10.6
10.6 (100)
(100) (100)
(100)
African
AfricanCopper
Copper––total
totalproduction
productionincluding
includingthird
thirdparty
partyfeed
feed
Mopani
Mopani Copper metal
Copper metal kt
kt –– 5.6
5.6 21.1
21.1 29.5
29.5 26.3
26.3 82.5
82.5 51.3
51.3 61
61 n.m.
n.m.
Copper
Copperin inconcentrates
concentrates kt
kt 3.3
3.3 –– –– –– –– –– 10.6
10.6 (100)
(100) (100)
(100)
Total
TotalCopper
Coppermetal
metal kt
kt 83.4
83.4 67.3
67.3 73.8
73.8 80.8
80.8 79.1
79.1 301.0
301.0 359.3
359.3 (16)
(16) (5)
(5)
Total
TotalCopper
Copperininconcentrates
concentrates kt
kt 3.3
3.3 –– –– –– –– –– 10.6
10.6 (100)
(100) (100)
(100)
Total
TotalCobalt
2
Cobalt2 kt
kt 10.7
10.7 5.3
5.3 7.2
7.2 6.4
6.4 5.0
5.0 23.9
23.9 42.2
42.2 (43)
(43) (53)
(53)
Collahuasi3
Collahuasi3 Copper
concentrates kt
kt 72.3
72.3 66.5
66.5 75.6
75.6 75.5
75.5 59.2
59.2 276.8
276.8 248.8
248.8 1111 (18)
(18)
Silver
Silverininconcentrates
concentrates koz
koz 910
910 1,063
1,063 850
850 1,155
1,155 893
893 3,961
3,961 2,878
2,878 38
38 (2)
(2)
Gold
Goldin inconcentrates
4
concentrates4 koz
koz 14
14 12
12 14
14 18
18 99 53
53 38
38 39
39 (36)
(36)
Antamina5
Antamina5 Copper
concentrates kt
kt 37.6
37.6 33.1
33.1 17.8
17.8 36.1
36.1 40.7
40.7 127.7
127.7 151.4
151.4 (16)
(16) 88
Zinc in concentrates
Zinc in concentrates kt
kt 26.7
26.7 36.9
36.9 16.4
16.4 44.2
44.2 44.9
44.9 142.4
142.4 102.4
102.4 39
39 68
68
Silver
Silverin
inconcentrates
concentrates koz
koz 1,304
1,304 1,316
1,316 686
686 1,516
1,516 2,017
2,017 5,535
5,535 5,051
5,051 10
10 55
55
Other
OtherSouth
SouthAmerica
America(Antapaccay,
(Antapaccay,Lomas
LomasBayas)
Bayas)
Antapaccay
Antapaccay Copper
concentrates kt
kt 47.5
47.5 38.0
38.0 43.1
43.1 53.0
53.0 51.5
51.5 185.6
185.6 197.6
197.6 (6)
(6) 88
Gold in concentrates
Gold in concentrates koz
koz 23
23 22
22 12
12 24
24 32
32 90
90 85
85 66 39
39
Silver
Silverin
inconcentrates
concentrates koz
koz 338
338 270
270 295
295 378
378 355
355 1,298
1,298 1,576
1,576 (18)
(18) 55
Lomas
LomasBayas
Bayas Copper
Coppermetal
metal kt
kt 19.2
19.2 18.4
18.4 18.5
18.5 19.2
19.2 18.0
18.0 74.1
74.1 78.9
78.9 (6)
(6) (6)
(6)
Total
TotalCopper
Coppermetal
metal kt
kt 19.2
19.2 18.4
18.4 18.5
18.5 19.2
19.2 18.0
18.0 74.1
74.1 78.9
78.9 (6)
(6) (6)
(6)
Total
Total Copperin
Copper inconcentrates
concentrates kt
kt 47.5
47.5 38.0
38.0 43.1
43.1 53.0
53.0 51.5
51.5 185.6
185.6 197.6
197.6 (6)
(6) 88
Total
TotalGold
Goldininconcentrates
concentrates
and
andinindoré
doré koz
koz 23
23 22
22 12
12 24
24 32
32 90
90 85
85 66 39
39
Total
TotalSilver
Silverin
inconcentrates
concentrates
and
andinindoré
doré koz
koz 338
338 270
270 295
295 378
378 355
355 1,298
1,298 1,576
1,576 (18)
(18) 55
Glencore
GlencoreAnnual
AnnualReport
Report2020
2020 97
97
PRODUCTION BY QUARTER – Q4 2019 TO Q4 2020

continued
Metals and minerals
PRODUCTION FROM OWN SOURCES – COPPER ASSETS1 CONTINUED

Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
Mount Isa, Ernest Henry, Townsville, Cobar
Copper metal kt 45.8 31.8 32.6 40.5 33.9 138.8 151.1 (8) (26)
Gold koz 18 22 24 22 25 93 100 (7) 39
Silver koz 245 156 165 208 226 755 1,154 (35) (8)
Mount Isa, Ernest Henry, Townsville – total production including third party feed
Copper metal kt 61.2 53.2 49.8 59.7 54.5 217.2 220.5 (1) (11)
Gold koz 36 33 39 45 41 158 140 13 14
Silver koz 395 331 321 393 372 1,417 1,389 2 (6)
Cobar Copper in concentrates kt 11.1 11.8 11.0 10.7 12.7 46.2 43.5 6 14
Silver in concentrates koz 119 117 126 129 144 516 461 12 21
Total Copper metal kt 45.8 31.8 32.6 40.5 33.9 138.8 151.1 (8) (26)
Total Copper in concentrates kt 11.1 11.8 11.0 10.7 12.7 46.2 43.5 6 14
Total Gold koz 18 22 24 22 25 93 100 (7) 39
Total Silver koz 364 273 291 337 370 1,271 1,615 (21) 2
Total Copper department

Copper kt 320.2 266.9 272.4 315.8 295.1 1,150.2 1,241.2 (7) (8)
Cobalt kt 10.7 5.3 7.2 6.4 5.0 23.9 42.2 (43) (53)
Zinc kt 26.7 36.9 16.4 44.2 44.9 142.4 102.4 39 68
Gold koz 55 56 50 64 66 236 223 6 20
Silver koz 2,916 2,922 2,122 3,386 3,635 12,065 11,120 8 25

98
continued
Metals and minerals
PRODUCTION FROM OWN SOURCES – ZINC ASSETS1

Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Kazzinc
Zinc metal kt 38.5 43.3 41.6 43.9 38.7 167.5 172.5 (3) 1
Lead metal kt 4.2 5.5 6.8 5.7 7.6 25.6 31.6 (19) 81
Lead in concentrates kt – – – – – – 2.8 (100) n.m.
Copper metal6 kt 12.7 8.7 8.8 10.6 8.9 37.0 44.0 (16) (30)
Gold koz 177 150 144 175 190 659 634 4 7
Silver koz 1,214 844 936 1,218 1,714 4,712 4,546 4 41
Silver in concentrates koz – – – – – – 92 (100) n.m.
Kazzinc – total production including third party feed

Zinc metal kt 76.3 75.0 73.9 74.1 75.2 298.2 293.3 2 (1)
Lead metal kt 29.8 29.8 35.2 29.9 30.1 125.0 129.0 (3) 1
Lead in concentrates kt – – – – – – 2.8 (100) n.m.
Copper metal kt 19.9 14.9 14.2 16.9 14.7 60.7 65.1 (7) (26)
Gold koz 263 197 218 256 294 965 962 – 12
Silver koz 6,056 4,704 5,406 5,631 6,399 22,140 23,129 (4) 6
Silver in concentrates koz – – – – – – 92 (100) n.m.
Australia (Mount Isa, McArthur River)

Mount Isa Zinc in concentrates kt 75.3 85.2 89.5 91.3 88.2 354.2 326.4 9 17
Lead in concentrates kt 33.8 38.1 41.3 43.6 38.9 161.9 158.0 2 15
Silver in concentrates koz 1,108 1,341 1,637 1,517 1,295 5,790 5,518 5 17
McArthur River Zinc in concentrates kt 70.4 68.5 68.6 65.8 76.4 279.3 271.2 3 9
Lead in concentrates kt 16.0 14.6 14.1 11.2 15.0 54.9 55.3 (1) (6)
Silver in concentrates koz 525 472 340 315 487 1,614 1,675 (4) (7)
Total Zinc in concentrates kt 145.7 153.7 158.1 157.1 164.6 633.5 597.6 6 13
Total Lead in concentrates kt 49.8 52.7 55.4 54.8 53.9 216.8 213.3 2 8
Total Silver in concentrates koz 1,633 1,813 1,977 1,832 1,782 7,404 7,193 3 9
North America (Matagami, Kidd)

Matagami Zinc in concentrates kt 10.6 14.5 11.8 12.4 13.5 52.2 43.8 19 27
Copper in concentrates kt 1.3 1.8 1.6 1.4 1.9 6.7 5.6 20 46
Kidd Zinc in concentrates kt 15.8 19.3 11.8 18.7 12.7 62.5 67.6 (8) (20)
Copper in concentrates kt 9.6 8.1 5.3 11.1 9.5 34.0 33.5 1 (1)
Silver in concentrates koz 561 517 412 679 517 2,125 1,654 28 (8)
Total Zinc in concentrates kt 26.4 33.8 23.6 31.1 26.2 114.7 111.4 3 (1)
Total Copper in concentrates kt 10.9 9.9 6.9 12.5 11.4 40.7 39.1 4 5
Total Silver in concentrates koz 561 517 412 679 517 2,125 1,654 28 (8)

99

continued
Metals and minerals
PRODUCTION FROM OWN SOURCES – ZINC ASSETS1 CONTINUED

Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Other Zinc: South America (Argentina, Bolivia, Peru)
7
Zinc in concentrates kt 31.0 27.9 14.8 33.7 35.9 112.3 93.6 20 16

Lead in concentrates kt 6.2 3.5 4.0 5.9 3.6 17.0 32.3 (47) (42)
Copper in concentrates kt 0.4 0.4 0.2 0.5 0.5 1.6 2.7 (41) 25
Silver in concentrates koz 1,851 1,574 844 1,871 1,832 6,121 6,906 (11) (1)
Total Zinc department

Zinc kt 241.6 258.7 238.1 265.8 265.4 1,028.0 975.1 5 10
Lead kt 60.2 61.7 66.2 66.4 65.1 259.4 280.0 (7) 8
Copper kt 24.0 19.0 15.9 23.6 20.8 79.3 85.8 (8) (13)
Gold koz 177 150 144 175 190 659 634 4 7
Silver koz 5,259 4,748 4,169 5,600 5,845 20,362 20,391 – 11

100
continued
Metals and minerals
PRODUCTION FROM OWN SOURCES – NICKEL ASSETS1

Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
Nickel metal kt 14.9 14.5 13.1 13.8 15.1 56.5 59.8 (6) 1
Nickel in concentrates kt 0.1 0.1 0.1 – 0.2 0.4 0.5 (20) 100
Copper metal kt 4.7 3.4 2.9 3.4 3.8 13.5 15.8 (15) (19)
Copper in concentrates kt 6.5 4.0 3.6 3.8 3.7 15.1 28.4 (47) (43)
Cobalt metal kt 0.1 0.1 0.1 0.2 0.2 0.6 0.7 (14) 100
Gold koz 8 5 6 5 5 21 29 (28) (38)
Silver koz 110 108 116 49 66 339 507 (33) (40)
Platinum koz 3 12 12 6 10 40 51 (22) 233
Palladium koz 25 28 29 21 23 101 112 (10) (8)
Rhodium koz 1 1 1 1 1 4 4 – –
Nickel metal kt 23.4 22.4 21.3 23.9 23.5 91.1 92.1 (1) –
Nickel in concentrates kt 0.2 0.1 0.1 0.1 0.1 0.4 0.6 (33) (50)
Copper metal kt 6.3 5.1 4.6 5.3 5.5 20.5 22.0 (7) (13)
Copper in concentrates kt 7.7 4.9 4.8 5.0 2.9 17.6 32.8 (46) (62)
Cobalt metal kt 1.2 0.9 1.0 1.3 1.2 4.4 4.4 – –
Gold koz 11 9 9 10 8 36 43 (16) (27)
Silver koz 162 174 200 82 89 545 749 (27) (45)
Platinum koz 19 21 22 13 16 72 84 (14) (16)
Palladium koz 53 69 73 48 48 238 228 4 (9)
Rhodium koz 1 1 1 2 1 5 5 – –
Murrin Murrin
Total Nickel metal kt 9.7 7.6 10.2 9.5 9.1 36.4 36.6 (1) (6)
Total Cobalt metal kt 1.1 0.7 0.9 0.7 0.6 2.9 3.4 (15) (45)
Murrin Murrin – total production including third party feed

Total Nickel metal kt 10.6 8.6 11.5 10.9 9.8 40.8 40.7 – (8)
Total Cobalt metal kt 1.1 0.8 0.9 0.9 0.7 3.3 3.7 (11) (36)
Koniambo Nickel in ferronickel kt 6.5 6.0 3.6 3.3 4.0 16.9 23.7 (29) (38)
Total Nickel department

Nickel kt 31.2 28.2 27.0 26.6 28.4 110.2 120.6 (9) (9)
Copper kt 11.2 7.4 6.5 7.2 7.5 28.6 44.2 (35) (33)
Cobalt kt 1.2 0.8 1.0 0.9 0.8 3.5 4.1 (15) (33)
Gold koz 8 5 6 5 5 21 29 (28) (38)
Silver koz 110 108 116 49 66 339 507 (33) (40)
Platinum koz 3 12 12 6 10 40 51 (22) 233
Palladium koz 25 28 29 21 23 101 112 (10) (8)
Rhodium koz 1 1 1 1 1 4 4 – –

101

continued
Metals and minerals
PRODUCTION FROM OWN SOURCES – FERROALLOYS ASSETS1

Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Ferrochrome8 kt 408 388 78 185 378 1,029 1,438 (28) (7)
Vanadium pentoxide mlb 4.4 4.2 4.1 5.3 5.9 19.5 20.2 (3) 34
TOTAL PRODUCTION – CUSTOM METALLURGICAL ASSETS1
Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Copper (Altonorte, Pasar, Horne, CCR)
Copper metal kt 109.0 123.0 124.1 119.5 116.0 482.6 432.9 11 6
Copper anode kt 132.3 127.4 102.8 125.5 134.4 490.1 510.7 (4) 2
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)

Zinc metal kt 204.6 195.9 195.6 192.1 203.6 787.2 805.7 (2) –
Lead metal kt 50.6 44.6 54.7 52.9 45.8 198.0 190.5 4 (9)

102
continued
Energy products
PRODUCTION FROM OWN SOURCES – COAL ASSETS1

Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Australian coking coal mt 3.1 1.8 1.9 1.9 2.0 7.6 9.2 (17) (35)
Australian semi-soft coal mt 1.3 1.6 1.0 1.0 1.0 4.6 6.4 (28) (23)
Australian thermal coal (export) mt 16.4 14.5 14.9 13.5 12.8 55.7 64.2 (13) (22)
Australian thermal coal (domestic) mt 2.4 2.0 1.7 1.2 1.5 6.4 8.6 (26) (38)
South African thermal coal (export) mt 2.9 3.7 3.5 4.3 3.3 14.8 13.0 14 14
South African thermal coal (domestic) mt 2.8 2.5 2.5 2.4 1.8 9.2 13.9 (34) (36)
Prodeco mt 4.3 3.8 – – – 3.8 15.6 (76) (100)
Cerrejón9 mt 2.3 2.0 0.7 1.1 0.3 4.1 8.6 (52) (87)
Total Coal department mt 35.5 31.9 26.2 25.4 22.7 106.2 139.5 (24) (36)
OIL ASSETS
Change Change
Q4 Q1 Q2 Q3 Q4 2020 vs Q4 20 vs
2019 2020 2020 2020 2020 2020 2019 2019 Q4 19
% %
Glencore entitlement interest basis
Equatorial Guinea kbbl 597 522 569 524 345 1,960 1,895 3 (42)
Chad kbbl 1,106 1,083 29 – – 1,112 3,371 (67) (100)
Cameroon kbbl 177 201 208 224 239 872 252 246 35
Total Oil department kbbl 1,880 1,806 806 748 584 3,944 5,518 (29) (69)
Gross basis
Equatorial Guinea kbbl 2,906 3,080 2,810 2,674 1,871 10,435 9,236 13 (36)
Chad kbbl 1,511 1,481 40 – – 1,521 4,608 (67) (100)
Cameroon kbbl 514 582 603 650 693 2,528 730 246 35
Total Oil department kbbl 4,931 5,143 3,453 3,324 2,564 14,484 14,574 (1) (48)
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 Reported from Q4 2020 given higher gold price and production, with resulting increased materiality. Comparatives updated accordingly.
5 The Group’s pro-rata share of Antamina production (33.75%).
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%).

103
RESOURCES
RESOURCES AND
AND RESERVES
RESERVES
The resource and reserve data in the following tables comprise summary extracts of the Glencore Resources and Reserves report
The resource and reserve data in the following tables comprise summary extracts of the Glencore Resources and Reserves report
as at 31 December 2020, as published on the Glencore website on 3 February 2021. The Glencore Resources and Reserves report
as at 31 December 2020, as published on the Glencore website on 3 February 2021. 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
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 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)
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
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.
of oil and natural gas reserves and resources.
Data is reported as at 31 December 2020, unless otherwise noted. For comparison purposes, data for 2019 has been included. Metric
Data is reported as at 31 December 2020, unless otherwise noted. For comparison purposes, data for 2019 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
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
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.
therefore be small differences in the totals.
Metals and minerals: Copper

Metals and minerals: Copper
COPPER MINERAL RESOURCES
COPPER MINERAL RESOURCES
Measured Mineral Indicated Mineral Measured and Inferred
Measured Mineral
Resources Indicated Mineral
Resources Measured
Indicated and
Resources Inferred
Mineral Resources
Resources Resources Indicated Resources Mineral Resources
Name of operation Commodity 2020 2019 2020 2019 2020 2019 2020 2019
African copper
African copper
Katanga (Mt) – 16 290 249 290 265 99 163
Katanga (Mt) – 16 290 249 290 265 99 163
Copper (%) – 3.58 4.73 3.69 4.73 3.68 1.56 3.80
Copper (%) – 3.58 4.73 3.69 4.73 3.68 1.56 3.80
Cobalt (%) – 0.57 0.55 0.54 0.55 0.54 0.47 0.45
Cobalt (%) – 0.57 0.55 0.54 0.55 0.54 0.47 0.45
Mutanda (Mt) 368 368 96 96 464 464 17 17

Mutanda (Mt) 368 368 96 96 464 464 17 17
Copper (%) 1.39 1.39 0.97 0.97 1.31 1.31 0.72 0.72
Copper (%) 1.39 1.39 0.97 0.97 1.31 1.31 0.72 0.72
Cobalt (%) 0.55 0.55 0.44 0.44 0.53 0.53 0.54 0.53
Cobalt (%) 0.55 0.55 0.44 0.44 0.53 0.53 0.54 0.53
Collahuasi (Mt) 876 857 4,729 4,534 5,605 5,391 4,898 4,806
Collahuasi (Mt) 876 857 4,729 4,534 5,605 5,391 4,898 4,806
Copper (%) 0.79 0.80 0.8 0.81 0.8 0.81 0.73 0.73
Copper (%) 0.79 0.80 0.8 0.81 0.8 0.81 0.73 0.73
Molybdenum (%) 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
Molybdenum (%) 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
Antamina (Mt) 329 344 642 650 971 994 1,272 1,295
Antamina (Mt) 329 344 642 650 971 994 1,272 1,295
Copper (%) 0.82 0.84 0.89 0.86 0.86 0.86 1.01 1.02
Copper (%) 0.82 0.84 0.89 0.86 0.86 0.86 1.01 1.02
Zinc (%) 0.64 0.67 0.72 0.75 0.69 0.72 0.58 0.60
Zinc (%) 0.64 0.67 0.72 0.75 0.69 0.72 0.58 0.60
Silver (g/t) 9 9 12 11 11 10 11 11
Silver (g/t) 9 9 12 11 11 10 11 11
Molybdenum (%) 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.02
Molybdenum (%) 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.02
Other South
Other South
America (Mt) 509 659 2,131 1,971 2,639 2,629 654 703
America (Mt) 509 659 2,131 1,971 2,639 2,629 654 703
Copper (%) 0.44 0.44 0.39 0.43 0.41 0.43 0.29 0.31
Copper (%) 0.44 0.44 0.39 0.43 0.41 0.43 0.29 0.31
Gold (g/t) 0.04 0.11 0.04 0.04 0.04 0.06 0.01 0.02
Gold (g/t) 0.04 0.11 0.04 0.04 0.04 0.06 0.01 0.02
Silver (g/t) 0.8 0.7 0.8 0.8 0.8 0.8 0.1 0.2
Silver (g/t) 0.8 0.7 0.8 0.8 0.8 0.8 0.1 0.2
Australia (Mt) 71 108 178 167 249 275 33 160

Australia (Mt) 71 108 178 167 249 275 33 160
Copper (%) 2.15 1.79 1.44 1.39 1.68 1.54 1.83 1.09
Copper (%) 2.15 1.79 1.44 1.39 1.68 1.54 1.83 1.09
Gold (g/t) 0.05 0.06 0.21 0.23 0.16 0.16 0.30 0.06
Gold (g/t) 0.05 0.06 0.21 0.23 0.16 0.16 0.30 0.06
Silver (g/t) 1.6 0.7 0.4 0.4 0.7 0.5 2.6 0.6
Silver (g/t) 1.6 0.7 0.4 0.4 0.7 0.5 2.6 0.6
Other projects1 1 (Mt) 853 853 2,319 2,318 3,171 3,171 3,023 3,023
Other projects (Mt) 853 853 2,319 2,318 3,171 3,171 3,023 3,023
(El Pachon,
(El Pachon,
West Wall,
West Wall,
Polymet) Copper (%) 0.51 0.50 0.45 0.45 0.47 0.47 0.39 0.39
Polymet) Copper (%) 0.51 0.50 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 3 February 2021.

RESOURCES AND
Resources and RESERVES
reserves
continued
continued
COPPER ORE RESERVES

Proved Ore Reserves Probable Ore Reserves Total Ore Reserves
Name of operation Commodity 2020 2019 2020 2019 2020 2019
African copper
Katanga (Mt) – 9 143 115 143 124
Copper (%) – 3.56 3.66 3.18 3.66 3.20
Cobalt (%) – 0.56 0.49 0.53 0.49 0.53
Mutanda (Mt) 48 48 82 82 130 130

Copper (%) 1.36 1.36 1.59 1.59 1.15 1.51
Cobalt (%) 0.62 0.62 0.75 0.75 0.70 0.70
Collahuasi (Mt) 491 486 3,685 2,569 4,176 3.055

Copper (%) 1.01 1.03 0.78 0.90 0.80 0.92
Molybdenum (%) 0.02 0.02 0.02 0.03 0.02 0.03
Antamina (Mt) 206 224 1.76 205 382 430

Copper (%) 0.90 0.92 0.92 0.91 0.91 0.91
Zinc (%) 0.77 0.80 1.06 1.12 0.91 0.95
Silver (g/t) 9 9 10 11 9 10
Molybdenum (%) 0.026 0.027 0.022 0.021 0.024 0.024
Other South America (Mt) 328 484 510 707 838 1,192
Copper (%) 0.41 0.44 0.34 0.49 0.37 0.46
Gold (g/t) 0.05 0.10 0.04 0.05 0.04 0.07
Silver (g/t) 0.7 0.8 0.6 1.2 0.6 1.0
Australia (Mt) 17 22 56 58 73 81
Copper (%) 2.64 2.34 1.37 1.36 1.66 1.63
Gold (g/t) 0.13 0.22 0.30 0.31 0.26 0.29
Silver (g/t) 4.7 2.8 0.8 0.6 1.7 1.2
Other projects1 (Mt) 157 157 106 106 264 264

(Polymet) Copper (%) 0.29 0.29 0.29 0.29 0.29 0.29

RESOURCES AND
reserves
continued
continued
Metals and minerals: Zinc
ZINC MINERAL RESOURCES

Kazzinc
Kazzinc Polymetallic (Mt) 111 130 123 93 234 223 172 149
Zinc (%) 2.8 2.6 1.4 1.3 2.0 2.1 2.2 2.0
Lead (%) 0.9 0.8 0.4 0.4 0.6 0.6 1.2 1.0
Copper (%) 0.3 0.4 0.2 0.2 0.3 0.3 0.3 0.1
Silver (g/t) 18 14 13 12 15 13 21 23
Gold (g/t) 1.1 1.1 1.0 0.9 1.0 1.0 0.8 1.0
Kazzinc Gold (Vasilkovskoye) (Mt) 73 70 53 44 126 113 2.0 0.1

Gold (g/t) 1.9 2.1 2.1 1.7 2.0 1.9 1.8 1.0
Australia
Mount Isa (Mt) 85 131 310 284 395 414 290 226
Zinc (%) 9.1 7.6 6.3 6.9 6.9 7.1 5 6
Lead (%) 4.1 4.3 3.4 3.4 3.6 3.6 3 3
Silver (g/t) 78 82 67 61 69 68 48 61
McArthur River (Mt) 106 107 57 56 162 163 – –

Zinc (%) 9.5 9.6 10.2 10.3 9.7 9.8 – –
Lead (%) 4.1 4.1 4.8 4.9 4.4 4.4 – –
Silver (g/t) 40 41 52 52 45 45 – –
North America
Zinc North America (Mt) 20.8 21.8 33 32 54 54 77 70
Zinc (%) 4.3 4.4 4.6 4.5 4.4 4.5 4.1 4.0
Lead (%) 0.5 0.5 0.6 0.6 0.6 0.6 0.8 1.0
Copper (%) 1.4 1.4 0.6 0.6 0.9 0.9 0.7 1.0
Silver (g/t) 46 45 114 116 88 87 124 134
Gold (g/t) 0.4 0.5 0.3 0.3 0.4 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 0.1
Volcan
Lead/zinc/silver deposits (Mt) 26 33 115 66 141 99 215 228
Zinc (%) 5.3 6.3 3.6 5.2 3.9 5.6 4.4 2.9
Lead (%) 1.5 1.5 1.1 1.5 1.1 1.5 1.5 1.1
Silver (g/t) 84 107 82 87 82 93 83 78
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) 14.1 14.6 21 24 35 38 75 76

Zinc (%) 5.6 5.8 4.1 4.2 4.7 4.8 6.4 6.0
Lead (%) 1.5 1.5 1.3 1.3 1.4 1.4 1.1 1.0
Copper (%) 0.3 0.4 0.3 0.3 0.3 0.3 0.1 0.2
Silver (g/t) 129 138 132 130 131 133 84 83

RESOURCES AND
reserves
continued
continued
ZINC ORE RESERVES

Kazzinc
Kazzinc Polymetallic (Mt) 68 78 23.8 13.0 92 91
Zinc (%) 3.5 3.4 3.5 4.5 3.5 3.6
Lead (%) 1.0 1.0 0.6 0.5 0.9 0.9
Copper (%) 0.2 0.2 0.3 0.5 0.2 0.2
Silver (g/t) 18 14 15 19 17 15
Gold (g/t) 0.6 0.6 0.8 0.9 0.7 0.7
Kazzinc Gold (Vasilkovskoye) (Mt) 43 42 36 44 79 86

Gold (g/t) 2.0 2.2 1.8 1.8 1.9 2.0
Australia
Mount Isa (Mt) 26 29 46 50 72 79
Zinc (%) 7.7 7.5 6.9 7.3 7.3 7.4
Lead (%) 3.9 3.9 3.5 3.4 3.7 3.6
Silver (g/t) 72 74 64 62 67 66
McArthur River (Mt) 74 71 12.7 27.0 87 98

Zinc (%) 9.4 9.5 7.8 8.0 9.2 9.1
Lead (%) 4.3 4.3 3.8 4.0 4.2 4.2
Silver (g/t) 43 42 39 42 42 42
North America (Mt) 4.5 5.7 1.7 1.0 6 7

Zinc (%) 4.04 4.42 4.0 5.1 4.0 4.5
Copper (%) 1.67 1.59 1.6 1.9 1.6 1.6
Silver (g/t) 41 43 38 43 40 43
Gold (g/t) 0.2 0.22 – – 0.1 0.2
Volcan (Mt) 6.7 10.1 20.8 22.6 27.6 32.7

Zinc (%) 4.3 5.3 4.6 4.5 4.6 4.8
Lead (%) 1.1 0.9 1.1 1.1 1.1 1.1
Silver (g/t) 80 99 91 92 88 94
Other Zinc (Mt) 3.6 5.2 9.0 11.3 13.0 16.6

Zinc (%) 5.6 6.0 2.8 3.5 3.6 4.3
Lead (%) 1.2 1.4 0.8 1.1 0.9 1.2
Copper (%) 0.2 0.2 0.2 0.2 0.2 0.2
Silver (g/t) 152 145 113 118 124 126

RESOURCES AND
reserves
continued
continued
Metals and minerals: Nickel
NICKEL MINERAL RESOURCES

INO (Mt) 9.6 10.8 36.7 37.6 46.2 48.4 49 42
Nickel (%) 2.59 2.77 2.55 2.48 2.55 2.54 1.6 1.7
Copper (%) 0.85 1.06 1.95 1.90 1.72 1.72 1.8 1.9
Cobalt (%) 0.06 0.06 0.06 0.06 0.06 0.06 0.003 0.04
Platinum (g/t) 0.73 0.79 0.92 0.96 0.88 0.92 0.8 1.0
Palladium (g/t) 1.47 1.53 1.59 1.59 1.57 1.58 1.4 1.6
Murrin Murrin (Mt) 144.1 144.5 74.6 75.5 218.8 220.0 17 17

Nickel (%) 1.00 1.01 1.00 0.99 1.00 1.00 0.9 0.9
Cobalt (%) 0.074 0.073 0.084 0.084 0.077 0.077 0.07 0.07
Koniambo (Mt) 11.5 11.7 44.0 41.7 55.5 53.5 84 82

Nickel (%) 2.47 2.48 2.41 2.41 2.42 2.42 2.5 2.5
NICKEL ORE RESERVES

INO (Mt) 8.30 8.40 19.90 21.6 28.2 29.9
Nickel (%) 1.93 1.92 2.33 2.30 2.21 2.20
Copper (%) 0.67 0.81 0.95 0.92 0.87 0.89
Cobalt (%) 0.04 0.04 0.06 0.05 0.05 0.05
Platinum (g/t) 0.57 0.60 0.53 0.52 0.54 0.55
Palladium (g/t) 1.05 1.01 0.95 0.97 0.99 0.98
Murrin Murrin (Mt) 103.0 103.6 33.9 37.8 136.8 141.4

Nickel (%) 1.02 1.03 1.04 1.04 1.03 1.03
Cobalt (%) 0.081 0.080 0.109 0.103 0.088 0.086
Koniambo (Mt) 11.0 11.5 26.0 30.3 37.2 41.8

Nickel (%) 2.23 2.24 2.17 2.18 2.20 2.19

RESOURCES AND
reserves
continued
continued
Metals and minerals: Ferroalloys
FERROALLOYS MINERAL RESOURCES

Western Chrome Mines
Western Chrome Mines (Mt) 58.347 55.121 58.55 61.11 116.89 116.23 101.4 101.8
Cr2O3 (%) 42.05 42.09 41.4 41.5 41.7 41.8 42 42
Tailings (Mt) – – – – – – 2.9 2.8

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

Eastern Chrome Mines (Mt) 72.017 66.172 44.73 49.23 116.76 115.40 180.7 186.4
Cr2O3 (%) 41.36 40.04 40.2 40.4 40.9 40.2 39 39
Tailings (Mt) – – – – – – 4.9 4.6

Cr2O3 (%) – – – – – – 20 20
Vanadium (Mt) 49.754 51.160 35.56 34.90 85.31 86.06 93 91

V2O5 (%) 0.47 0.48 0.5 0.5 0.5 0.5 0.5 0.5
Manganese (Mt) 27.186 – 19.55 – 46.74 – 3 –
Mn (%) 37.24 – 36.5 – 36.9 – 36 –
FERROALLOYS ORE RESERVES

Western Chrome Mines (Mt) 10.418 17.791 3.13 6.65 13.56 24.44
Cr2O3 (%) 30.23 30.79 29.0 28.0 29.9 33.0
Eastern Chrome Mines (Mt) 27.701 24.554 4.43 8.68 32.13 33.23
Cr2O3 (%) 33.55 33.23 33.8 33.6 33.6 33.3
Vanadium (Mt) 22.223 23.100 9.45 9.50 31.67 32.6

V2O5 (%) 0.47 0.47 0.43 0.4 0.5 0.5
Manganese (Mt) 21.650 – 4.10 – 25.75 –
Mn (%) 36.34 – 35.9 – 36.3 –
Metals and minerals: Aluminium/Alumina
ALUMINA MINERAL RESOURCES

Aurukun (Mt) 96 95 352 334 448 429 4 3
Al2O3 (%) 53.3 53.4 49.7 49.9 50.5 50.6 48.8 49.3

RESOURCES AND
reserves
continued
continued
Metals and minerals: Iron Ore
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) 3,671 3,745 3,644 3,669 7,591 7,591
Queensland Coking/Thermal Coal (Mt) 3,852 3,849 5,203 5,279 9,000 8,925
South Africa Thermal Coal (Mt) 2,314 2,346 839 839 344 344
Prodeco Thermal Coal (Mt) 190 190 155 147 60 60
Cerrejón Thermal Coal (Mt) 3,300 3,250 1,250 1,250 600 600
Canada projects
(Suska, Sukunka) Coking/Thermal Coal (Mt) 45 45 113 113 130 130

RESOURCES AND
reserves
continued
continued
COAL RESERVES
Marketable
Coal Reserves Coal Reserves Total Marketable
Proved Probable Proved Probable Coal Reserves
Australia
New South Wales Coking/Thermal Coal (Mt) 1,142 606 824 431 1,266 1.325
Queensland Coking/Thermal Coal (Mt) 416 225 357 174 528 1,241
South Africa Thermal Coal (Mt) 598 238 375 133 508 543
Prodeco Thermal Coal (Mt) – – – – – 135
Cerrejón Thermal Coal (Mt) 270 90 260 85 350 330
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 2019 13 151 100 – 3 – 116 151 142
Revisions 1 1 (2) – 2 – 1 1 1
Production (3) – (1) – (1) – (5) – (5)
31 December 2020 11 152 97 – 4 – 112 152 138
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 2019 23 454 61 – 4 – 88 454 166
31 December 2020 26 434 61 – 2 – 89 434 164
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 ENQUIRIES
Baarermattstrasse 3 Corporate Services
P.O. Box 1363 Glencore plc
CH-6341 Baar Baarermattstrasse 3
Switzerland P.O. Box 1363
CH-6341 Baar
REGISTERED OFFICE Switzerland
13 Castle Street Tel: +41 41 709 2000
St Helier, Jersey Fax: +41 41 709 3000
JE1 1ES Email: [email protected]
Channel Islands
The Company has a primary listing on the
London Stock Exchange (LSE) and a secondary
listing on the Johannesburg Stock Exchange (JSE).
Our website contains further information on our business and
for shareholders including as to share transfer and distributions:
glencore.com/investors/shareholder-centre
SHARE REGISTRARS
Jersey (for London listing)
Computershare Investor Services (Jersey) Limited
13 Castle Street
St Helier, Jersey
JE1 1ES
Channel Islands
Tel: +44 (0) 370 707 4040
Johannesburg
Computershare Investor Services (Pty) Ltd
Rosebank Towers,
15 Biermann Avenue,
Rosebank, 2196,
South Africa
Tel: +27 (0) 11 370 5000

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

This report is printed on Heaven 42 and UPM Fine Offset.
Both papers are made of FSC® certified and other
controlled material.
They also EMAS accredited.
Printed sustainably in the UK by Pureprint, a Carbon
Neutral company with FSC® Chain of custody and an
ISO 14001-certified environmental management system
recycling over 100% of all dry waste.
If you have finished with this document and no longer wish
to retain it, please pass it on to other interested readers or
dispose of it in your recycled waste. Thank you.
Designed and produced by

Glencore plc
Baarermattstrasse 3
CH-6340 Baar
Switzerland
Tel: +41 41 709 2000
Fax: +41 41 709 3000
E-mail: [email protected]
glencore.com

AR 2020 Glencore

Uploaded by

Copyright:

Available Formats

AR 2020 Glencore

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

AR 2020 Glencore

Uploaded by

Copyright:

Available Formats

RESPONSIBLY

Annual Report 2020

LIVING OUR VALUES

SAFETY INTEGRITY SIMPLICITY

RESPONSIBILITY OPENNESS ENTREPRENEURIALISM

STORIES FROM OUR YEAR

One of the world’s largest natural resource companies

Integrating sustainability throughout our business

Our Financial Highlights

$11.6bn ($1.9)bn $8.6bn $3.9bn

$37.5bn $15.8bn ◊ Alternative performance measures

Glencore Annual Report 2020 1

Chief Executive Officer

2 Glencore Annual Report 2020

Glencore Annual Report 2020 3

SHAREHOLDER RETURNS LOOKING AHEAD

4 Glencore Annual Report 2020

Glencore Annual Report 2020 5

Key Market drivers

Efforts to contain • Momentum to decarbonise the global economy is gathering

Changes in • The industrialisation and urbanisation of developing economies

Higher • Widespread adoption of renewable energy sources as a means

6 Glencore Annual Report 2020

Impact on our industry How we are responding

Impact on our industry How we are responding

Glencore Annual Report 2020 7

Inputs and resources on which

Our values reflect our purpose, our

8 Glencore Annual Report 2020

Outputs and impact

Our marketing Our industrial Sustainability Our strategy for a

Glencore Annual Report 2020 9

OUR PURPOSE STRATEGIC OBJECTIVE

10 Glencore Annual Report 2020

Integrity, responsibility and to focus on reducing and ethics and compliance

We will prioritise investment decarbonisation of accretive Scope 1+2

A low-carbon future We will participate in

Glencore Annual Report 2020 11

Strategic Performance in 2020

Operational performance Climate change Water management

Conservatively positioned Bonds Credit rating

Marketing green metals Responsible sourcing

12 Glencore Annual Report 2020

Key performance Risk Management

Priorities going forward KPIs Principal

Partnerships Circular economy • Returns to shareholders • Geopolitical,

Glencore Annual Report 2020 13

We are already committed to working

14 Glencore Annual Report 2020

COBALT: A CASE FOR LEADERSHIP IN “WE CANNOT IGNORE ARTISANAL MINING”

As part of Capacity Building for Associations,

Glencore Annual Report 2020 15

16 Glencore Annual Report 2020

Our 2020 Sustainability Report will provide a full disclosure on

continuing to meet our obligations to our customers.

Illustrative emissions pathway to net zero

Glencore Annual Report 2020 17

Results of scenario testing

Zinc Current Pathway The electrification, industrialisation and urbanisation of developing

* 2020 Adjusted EBITDA contribution