glencore agriculture limited annual report 2019

Our Cyber Defence Centre is responsible for day-to-day monitoring of cyber vulnerabilities across the world and driving remediation of threats. This financial policy facilitates access to funds, even in periods of market volatility. Any changes to these laws or their more stringent enforcement or restrictive interpretation could cause additional significant expenditure to be incurred and/or cause suspensions of operations and delays in the development of industrial assets. We conduct routine third party penetration tests to independently confirm the security of our IT systems and we seek to enhance monitoring of our Operational Technology (OT) platforms. Air quality in Mt Isa Air quality in Mt Isa. Our scenario planning and stress testing may accordingly prove to be optimistic, particularly in situations where material negative events occur in close proximity. We review our membership of trade associations to ensure that these do not undermine our support for the goals of the Paris Agreement. We have an incident response team that is responsible for coordinating the response in the event of a major cyber incident. The European coal market has seen reduced demand affecting our Colombian coal production in particular, also impacted by the low competing gas prices, which resulted in impairments in the year. The transaction also involves a payment from Orsted to Glencore. Some of our mine sites are in remote locations where they are a – or the – key employer in the region. We fulfil our purpose and deliver on our strategy in a manner that reflects our values of safety, integrity, responsibility, openness, simplicity and entrepreneurialism. Its focus continues to be on the Group’s catastrophic hazards. 2019 annual reporting 2019 annual reporting; 2020 Investor update 2020 Investor update; Media. Health and safety Health and safety. We foster an environment where our different backgrounds, cultures and beliefs are supported and encouraged. Glencore and Peabody began planning the new venture in 2012, with key milestones including: signing a Memorandum of Understanding (MOU) and public announcement of the joint venture in November 2014 submitting United Wambo Open Cut Coal Mine Project - SSD 7142 Preliminary Environmental Assessment (PEA) to the Department of Planning and Environment (DPE) on 30 June 2015 Glencore Agriculture to rebrand to Viterra. Future demand for certain commodities might decline (e.g. We have implemented a Group compliance programme that includes a range of policies, standards, procedures, guidelines, training and awareness, monitoring and investigations. We monitor catastrophic risks, in particular, across our portfolio and operate emergency response programmes. Our activities depend on technology for industrial production, efficient operations, environmental management, health and safety, communications, transaction processing and risk management. Based on the results of the related analysis, the Directors have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the four-year period of this assessment. The following responsibility statement is repeated here solely for the purpose of complying with DTR 6.3.5. The HVO Joint Venture operates and manages HVO on behalf of its joint venture partners Yancoal Australia Pty Ltd and Anotero Pty Ltd. Confirmation statement. These provide in part some differing descriptions of our principal risks. We look at risk appetite from the context of severity of the consequences should the risk materialise, factors influencing the risk and the Company’s ability to mitigate it. Environmental Social and Governance (ESG), {{labelSearchNav.label_load_more_results}}, glencore.com/sustainability/climate-change, glencore.com/media-and-insights/updates-regarding-illegal-mining-at-KCC, glencore.com/sustainability/community-and-human-rights, published its Annual Report for the year ended 31 December 2019 (“Annual Report”) on its website www.glencore.com as required by DTR 6.3.5 R (3); and. In 2019, an incident resulted in multiple fatalities and injuries of illegal miners at our Kamoto Copper Company (KCC) industrial operations. Company profile page for Glencore AG including stock price, company news, press releases, executives, board members, and contact information The following has been extracted from page 220 of the Annual Report. Whilst not a new risk, the security of long interconnected commodity supply chains is an area of increasing concern that we monitor closely to reduce the impact on the Group. Commodity prices are influenced by a number of external factors, including the supply of and demand for commodities, speculative activities by market participants, global political and economic conditions, related industry cycles and production costs in major producing countries. In addition, we undertook to ensure that our material capital expenditure and investments align with the Paris Goals, and to report publicly on how this is achieved. April 17, 2019. Company law requires the Directors to prepare financial statements for the Company for each financial year. The unrest has resulted in protests and blockades, leading to operational shutdowns and putting our workforce at risk of injury. CHICAGO & WHITE PLAINS, N.Y. & MINNEAPOLIS & GENEVA & ROTTERDAM, Netherlands – September 19, 2019 – The industry-wide initiative to modernize global agricultural commodity trade operations announced today that another major partner, Glencore Agriculture Limited, has joined the effort. If we do not have funds available for these activities then they will decrease. Katanga’s metallurgical plant received sufficient continuous high-voltage power to deliver on its ramp-up on schedule, though we are not complacent and continue to monitor the situation. Any successful claims brought against the Group could result in material damages being awarded against the Group, the cessation of operations, compensation and remedial and/or preventative orders. The largest of these exposures are to the currencies listed on page 56. The impact of any monetary fines, penalties, redress or other restitution requirements, and the reputational damage that could be associated with them as a result of proceedings that are decided adversely to the Group, could be material. It also depends on constructive relationships with a wide and diverse range of stakeholders. 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. GLENCORE AGRICULTURE UK LTD. - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity . Environment. 1-{{ itemSite.length }} {{labelSearchNav.label_results}}. Producer country currencies tend to increase in correlation with relevant higher commodity prices. The maintenance of positive employee and union relations and engagement, and the ability to attract and retain skilled workers, including senior management, are key to our success. We define an emerging risk as a risk that has not yet occurred but is at an early stage of becoming known and/ or coming into being and expected to grow greatly in significance in the longer term. Two of these galleries caved in, resulting in thirty fatalities. There are many risks and uncertainties which have the potential to significantly impact our business, including competitive, economic, political, legal, regulatory, sustainability and financial risk. This announcement should be read in conjunction with and is not a substitute for reading the full Annual Report. Operation between Yancoal (51%) and Glencore (49%). As of 2015, it ranked tenth in the Fortune Global 500 list of the world's largest companies. Developments - Resource nationalism continues to be a challenging issue in many countries. Risk description and potential impact - Climate change is a material issue that can affect our business. Companies House Companies House does not verify the accuracy of the information filed (link opens a new window) Sign in / Register. Although it is our policy to identify and, where appropriate and practical, actively manage risk, our policies and procedures may not adequately identify, monitor and quantify all risks. Risk description and potential impact - Community relations, in particular in developing countries such as Colombia, Zambia, DRC and Peru, are important for the Group’s local operations. Our approach towards risk management is determined by our ongoing understanding of the risks that we are exposed to, our risk appetite and how these risks change over time. Developments - This year we continued to see material examples of operating challenges, particularly at our identified transition assets. The Board has established an Ethics, Compliance and Culture Committee, which focuses on monitoring ethics and compliance, and seeking to ensure that business practices are aligned with the Group’s culture, see page 105. At present, we project a c. 30% reduction in Scope 3 emissions by 2035. In addition to the investigations commenced in 2019, the Group remains subject to investigation by other authorities, including the following: a. Nevertheless, some of our existing industrial and marketing activities are located in countries that are categorised as developing or as having complex political or social climates, and/or where corruption is generally understood to exist, and therefore there will always be residual risk in relation to our compliance with laws and external requirements. We seek to manage our coal business tightly around cash generation, including ensuring that ongoing/further investment has shorter cost pay-backs so as to mitigate “stranded-assets” risk. The costs associated with compliance with these laws and regulations, including the costs of regulatory permits, are substantial and increasing. Risk appetite - Low. Note 27 details the fair value of our financial assets and liabilities. Annual Report 2019. VITERRA UK LIMITED - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity. We do so through our strategy of sustainably growing total shareholder returns while maintaining a strong investment grade rating and acting as a responsible operator. Further details on this incident and our response are available on our website at: glencore.com/media-and-insights/updates-regarding-illegal-mining-at-KCC. We have optimised our bond debt maturity profile to no more than c. $3 billion of bonds maturing per annum. In doing so, we engage with local communities to demonstrate our operations’ contribution to socio-economic development and seek to ensure that appropriate measures are taken to prevent or mitigate possible adverse impacts on the community. the Directors' Responsibilities Statement. Adjusted EBITDA declined 32% to $5.6 billion. We maintain both a diverse portfolio of commodities, geographies, currencies, assets and liabilities and a global portfolio of customers and contracts. Source: Glencore plc (2015), Annual Report 2015, p. 171; Glencore plc (2017), Annual Report 2017, p. 79; Glencore (2018), Annual Report 2018, p. 54 and 91. 2019 Trafigura Terms and Conditions for the sales and purchase of physical non-ferrous metals Responsible sourcing As one of the world’s leading traders of metals and minerals, we recognise the potential for adverse social or environmental impacts associated with their extraction, processing and … We have started a programme to evaluate the cybersecurity posture of third parties that hold materially sensitive information about Glencore. We continued to take a flexible local approach to transforming our workforces’ safety and health attitudes and culture. Glencore’s key management personnel are the members of the Board of Directors, CEO, CFO and other senior management. We recognise that the increasing convergence of IT and Operational Technology (OT) networks will create new risks and demand additional management time and focus. It also set out details of payments on a project by project basis. The recent emergence of the novel coronavirus could lead to substantial disruptions in China which could impact the demand for the commodities supplied by the Group in this and other markets. Annual Report 2018 Glencore plc Annual Report 2018. Sustainability Sustainability. Although the Group has various structures in place which seek to protect its position where it does not exercise control, these other shareholders may have interests or goals that are inconsistent with ours. We publish security standards and educate our employees in order to raise awareness of cybersecurity threats. Developments - Divergence has been observed across different commodities over the past 12 months, with increasing levels of volatility seen, driven by global shifts in the supply-demand balance. From time to time, the Group may hedge a portion of its currency exposures and requirements in an attempt to limit any adverse effect of exchange rate fluctuations. These include those risks which would threaten the business model, future performance, solvency or liquidity of the Group. In contrast to 15, 9 was introduced without restating the previous year’s ˜ gures. Through the reporting function within the programme, our Board and senior management receive regular updates and have a detailed oversight on how our business is performing across all of the sustainability indicators. VITERRA … Mostly this entails emphasising certain risks more strongly than other risks rather than the elimination of, or creation of, risks. We review the potential energy cost impacts on our operating costs, Physical impacts: changes in weather patterns: floods; droughts; and storm frequency as well as storm surge have the potential to impact on ports and critical infrastructure and on local communities. The order in which these risks and uncertainties appear does not necessarily reflect the likelihood of their occurrence or the relative magnitude of their potential material adverse effect on our business. Adverse actions by governments and others can result in operational/project delays or loss of permits or licences to operate. There is full commitment from senior management and the Board to improve our performance. Read more 2020/03/31 . The Group transacts business in locations where it is exposed to a risk of overt or effective expropriation or nationalisation. Developments – During the year, the Group has become subject to further investigations by certain authorities: 1. “We’ve been interested in the initiative from the very early days and we’re excited now to […] However, in every case these do not attempt to be an exhaustive list. The main currency exchange rate exposure is through our industrial assets, as a large proportion of the costs incurred by these operations is denominated in the currency of the country in which each asset is located. This underpins our approach towards social, environmental, safety and compliance indicators, providing clear guidance on the standards we expect all our operations to achieve. This report documents the implementation of the undertaking from November 2017 to … Our sites span seven provinces and we employ around 7,650 people. Maintenance and, where possible, reduction of unit costs is regularly reviewed by management. While the selected annual report is being downloaded, we want to draw your attention to the Sustainability Report. We also continue to be an active member of the Extractive Industries Transparency Initiative (EITI). Baar, 7 August 2019 . Last accounts made up to 31 December 2019. Katanga Mining Announces Limited Resumption of Cobalt Exports. Mitigating factors - Diversification of our funding sources (bank borrowings, bonds and trade finance, further diversified by currency, interest rate and maturity). 3. Other examples include natural hazards, processing problems, technical malfunctions, unavailability of materials and equipment, unreliability and/or constraints of infrastructure, industrial accidents, labour force challenges, disasters, protests, force majeure factors, cost overruns, delays in permitting or other regulatory matters, vandalism and crime. Mitigating factors - We seek to diversify our counterparties. They also believe that the review period of four years is appropriate having regard to the Group’s business model, strategy, principal risks and uncertainties, and viability. Glencore’s Chief Executive Officer, Ivan Glasenberg, commented: “Our performance in the first half reflected a challenging economic backdrop for our commodity mix, as well as operating and cost setbacks within our ramp -up/development assets. Glencore plc is an Anglo-Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland, its oil and gas head office in London and its registered office in Saint Helier, Jersey.The current company was created through a merger of Glencore with Xstrata on 2 May 2013. Our operations are often located close to communities with limited healthcare. The Directors are responsible for preparing the Annual Report and financial statements in accordance with applicable law and regulations. Further details will also be published in our 2019 sustainability report. As a significant producer, marketer and consumer of energy products, energy is a key output, input, cost and revenue driver for our business, and a material source of our greenhouse gas emissions. Where possible foreign exchange (FX) exposure to non-operating FX risks is hedged. This detailed total government contributions in 2018 of over $5.7 billion. It is the Group’s policy to operate a BBB rating or above balance sheet and to ensure that a minimum level of cash and/or committed funding is available at any given time. We regret that we recorded 17 fatalities at our operations in 2019 (2018: 13). Sanofi’s financial reports, CSR and shareholder publications include annual reports, integrated reports and publications dedicated to individual shareholders. As a result, we are exposed to a wide range of political, economic, regulatory, social and tax environments. Risk is, however, by its very nature uncertain and inevitably events may lead to our policies and procedures not having a material mitigating effect on the negative impacts of the occurrence of a particular event. We are one of the major producers of key metals (including copper, cobalt and nickel) that are currently essential for electric vehicles and the transition to a low carbon economy, although technological change may over time reduce their requirement. Risk appetite - Medium. Figure 11: Glencore Agriculture’s Bondholders Source: Thomson Reuters Eikon (2019), “Company transactions: Loans,” viewed in July 2019; Thomson Emaxx (2019), “Bondholdings of Viterra Inc, at most recent filing date,” viewed in July 2019; Glencore Agriculture BV, Annual Report 2018, p. 20; Glencore Plc, Annual Report 2018, p. 210-212. Furthermore, changes in expected supply and demand conditions impact the expected future prices (and thus the price curve) of each commodity and significant falls in the prices of certain commodities (e.g. We determine how significant the potential impacts are (both positive and negative) and act accordingly, Properly select and apply accounting policies, Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information, Provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance, Make an assessment of the Company’s ability to continue as a going concern. Health and safety. 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