GLENCORE PLC Payments to Governments Report 2022
Energising Advancing
today tomorrow
Our approach | Our contribution | Our payments to governments Additional information |
Energising today:
As the world moves towards a low- carbon economy, we are focused on supporting the energy needs of today whilst investing in our transition metals portfolio.
Advancing tomorrow:
The world of tomorrow will look very different, with new sources of energy and ever greater levels of connectivity. The metals we produce, source and market will support the global ambition to decarbonise.
Welcome to Glencore's 2022 Payments to Governments Report
This report addresses our UK regulatory obligations under DTR 4.3A of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, which were introduced to implement the payments to governments requirements provided for in the EU Transparency and Accounting Directives. It also includes our commodity trading payments made to state-owned enterprises in Extractive Industry Transparency Initiative-implementing countries for the purchase of oil and gas and minerals and metals.
Further information on our approach to transparency, including the disclosure of the beneficial ownership information of our active industrial joint ventures in which we hold more than 5%, a list of entities in which the Group owns more than 20% interest, and our active marketing sales/purchase agents, is available at: glencore.com/who-we-are/ transparency
Our performance in 2022
During 2022, we made payments to governments of $9.4 billion, calculated in line with the UK Transparency Requirements.
Amounts in US$'000
- Argentina $988
- Australia $4,072,394
- Bolivia $3,134
- Cameroon $43,834
- Canada $322,974
- Chad $750
- Chile $632,248
- Colombia $884,230
- Democratic Republic of the Congo $843,387
- Equatorial Guinea $572,202
- Kazakhstan $375,558
- Peru $844,296
- South Africa $783,619
- United States $179
Our total payments to government were around $12 billionΔ in tax, royalty, levy and other payments during 2022.
Quick link
glencore.com
Introduction
Our performance in 2022 | 2 |
Chief Financial Officer's introduction | 3 |
At a glance | 5 |
Our approch to tax and transparency | 7 |
External engagement | 8 |
Our contribution
How we contribute | 10 |
Our payments to governments | |
Payments by countries | 12 |
Payments by government | 13 |
Payments by project | 15 |
Payments by region and commodity | 17 |
Extractive Industries Transparency Initiative | 18 |
Material advances and loans | 25 |
Additional information | |
Appendix One - Detailed country disclosures | 27 |
Glossary | 29 |
About this report | 31 |
Important notice | 32 |
Further information | 33 |
- Alternative performance measures
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 the 2022 Annual Report APMs section on page 260 for definitions, explanation of use and reconciliations and note 2 of the financial statements for reconciliation of Adjusted EBIT/
EBITDA.
- Selected ESG information
Selected Environmental, Social and Governance (ESG) metrics (Selected Information) in this report have been subject to independent limited assurance under ISAE 3000 (Revised) by Deloitte LLP. The Selected Information is identified by the Δ symbol. The scope and limitations of Deloitte LLP's assurance are set out in their report in the 2022 Annual Report, on pages 141 to 156 and in the 2022 Sustainability Report on pages 133 to 135. See also the 2022 Basis of Reporting online at glencore.com/ publications.
$ US dollars
A $ symbol refers to US dollars unless otherwise specified.
This document has not been prepared as financial or investment advice or to provide any guidance in relation to our future performance. Refer to the Important notice concerning this report, including in relation to forward looking statements, on page 29.
Glencore Payments to Governments Report 2022 | 2 |
Our approach | Our contribution | Our payments to governments Additional information |
Chief Financial Officer's introduction
During 2022, our total payments to governments were $12 billionΔ in tax, royalty, levy and other payments.
I am pleased to introduce our annual Payments to Governments Report.
Our 2022 financial results were a record for Glencore, as the unprecedented developments in the global energy markets and years of underinvestment underpinned generally high and volatile commodity prices during the year. As one of the world's largest resource companies, with a presence at multiple stages of the commodity supply chain, we were able to leverage our unique position and deliver record profitability.
Our success, in turn, generated substantial payments to the governments of our operating jurisdictions. In 2022, our total payments to governments were $12 billionΔ in tax, royalty, levy and other payments (2021: $7.6 billion). Corporate income tax contributed most to the year-on-year increase, while royalties paid also materially increased, mainly reflecting the higher commodity prices. Approximately 93% of total royalties, duties and taxes were paid in Australia, Canada, Colombia, the DRC, Kazakhstan, Peru and South Africa.
These payments enable governments to realise value from their natural resources. The funds raised by governments from tax, royalty and levy payments can be used to finance public services, infrastructure and to invest in initiatives to improve the quality of life for their people.
Investigations
In 2022, we entered into resolutions with authorities in the US, UK and Brazil in relation to the investigations which started in 2018 concerning historical bribery and market manipulation and reached an agreement with the Democratic Republic of Congo (DRC) over past conduct. We also continue to cooperate with the Swiss and Dutch authorities with regards to their ongoing investigations.
The Investigations Committee of the Board is continuing to oversee the Group's response to these investigations.
We have been subject to a number of claims arising from these resolutions or their subject matter, mainly from affected companies or countries or from shareholders, some of which we have resolved and others which are at an early stage and will continue for some time. These claims all reinforce the importance of ensuring that the Company is a responsible and ethical operator wherever we work.
Committed to operating responsibly and ethically
Glencore today is not the company it was when the unacceptable practices identified in the investigations occurred. The Board and the management team are committed to operating a company that creates value for all stakeholders by operating transparently under a well-defined set of
Steve Kalmin
Chief Financial Officer
Values, with openness and integrity at the forefront.
Glencore Payments to Governments Report 2022 | 3 |
Our approach | Our contribution | Our payments to governments Additional information |
Chief Financial Officer's introduction continued
Over the last number of years, we have invested heavily to improve our Ethics and Compliance programme and are committed to learning from our past failures. Pursuant to the resolutions with the US Department of Justice, independent compliance monitors have been appointed and we look forward to working with them co-operatively and constructively as they review our ethics and compliance programme to ensure that they can report on a strong and effective programme as the conclusion of their work.
Contributing to sustainable socio-economic progress
We seek to make a valued contribution to social progress through the production and marketing of commodities that provide the basic building blocks for development; through the provision of employment and business partner opportunities; through payments to governments such as taxes and royalties; and through social development in societies where we operate.
As a member of the societies where we operate, we work in partnership with government, civil society and development agencies to share knowledge, build capacity and contribute to enduring social and economic outcomes.
We support economic development by providing local employment, procurement and contracting opportunities to local enterprises and by incorporating social transition strategies into our planning process to mitigate closure impacts. Around 96% of our employees are sourced locally and nearly 80% of our industrial assets' global procurement spend is with supplier and contractors local to the countries in which they operate.
We spent $6.3 billion on wages and benefits for over 140,000 employees and contractors working for Glencore (2021: $6 billion) in 2022.
During 2022, we spent $90 million on community development programmes (2021: $68million). The increase reflects the resumption of activities following suspension during Covid-related lockdowns, the inclusion of Cerrejón's social investment spend and for humanitarian assistance in response to the conflict in Ukraine.
Steve Kalmin,
Chief Financial Officer
30 June 2023
Highlights in 2022
Governments
$12.0bnΔ
in taxes, royalties and other payments
Global adjusted effective tax rate
28.1%*
Employees
$6.3bn*
in salaries, wages, social security and other benefits
Community investment
$90m*
on community development programmes
- Refer to the Annual Report 2022 for further information.
Glencore Payments to Governments Report 2022 | 4 |
Our approach | Our contribution |
At a glance
Financial highlights
Our payments to governments Additional information
Sustainability highlights
Adjusted EBITDA◊ (US$ billion)
35 | 34.1 | |||||||
40 | ||||||||
34.1 | 2021: 21.3 | |||||||
30 | ||||||||
25 | ||||||||
21.3 | ||||||||
20 | ||||||||
15 | ||||||||
11.6 | ||||||||
10 | ||||||||
5 | ||||||||
0 | 2020 | 2021 | 2022 |
"The unprecedented developments in global commodity markets in 2022 confirmed the strength of our diversified business model across Industrial and Marketing, delivering another year of record earnings."
Gary Nagle
Chief Executive Officer
Net income/(loss) attributable to equity holders* (US$ billion)
20 | 17 | 17.3 | ||||||
.3 | 2021: 5.0 | |||||||
15 | ||||||||
10 | ||||||||
5 | 5. | |||||||
0 | ||||||||
0 | ||||||||
(1.9) | ||||||||
-5 | 2020 | 2021 | 2022 |
Funds from operations (FFO)◊
(US$ billion)
35 | 28.9 | |||||||
30 | 2021: 17.1 | |||||||
28 | ||||||||
.9 | ||||||||
25 | ||||||||
20 | ||||||||
17.1 | ||||||||
15 | ||||||||
10 | ||||||||
8.3 | ||||||||
5 | ||||||||
0 | 2020 | 2021 | 2022 |
Total borrowings* (US$ billion)
35 | 37. | 28.8 | ||||||
40 | ||||||||
5 | ||||||||
34 | 2021: 34.6 | |||||||
.6 | ||||||||
30 | ||||||||
28.8 | ||||||||
25 | ||||||||
20 | ||||||||
15 | ||||||||
10 | ||||||||
5 | ||||||||
0 | 2020 | 2021 | 2022 |
Net debt◊
(US$ billion)
20 | 0.1 | |||||
2021: 6.0 | ||||||
15.8 | ||||||
15 | ||||||
10 | ||||||
6.0 | ||||||
5 | ||||||
0.1 | ||||||
0 | 2020 | 2021 | 2022 |
CO2e Scope 1 and 2 market-based
(Million tonnes)Δ
28.0
2021: 27.4 (restated)
CO2e Scope 3
(Million tonnes) Δ
342
2021: 365 (restated)
Lost time injury frequency rate
per million hours worked Δ
0.84
2021: 0.82
Total recordable injury frequency rate
per million hours worked Δ
2.2
2021: 2.4
Community investment*
US$ (million)
90
2021: 67
- Refer to the Annual Report 2022 for further information.
Glencore Payments to Governments Report 2022 | 5 |
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Disclaimer
Glencore plc published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 07:18:05 UTC.
