glencore agriculture limited annual report 2019 page contents

2019 Annual Report We are one of the world’s largest natural resource companies. However, the Directors are also required to: The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies (Jersey) Law 1991. Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. 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. Although we seek to improve our policies and their implementation over time, we continue to experience shortcomings, which result in health and safety and environmental issues. We continued to take a flexible local approach to transforming our workforces’ safety and health attitudes and culture. This Annual Report 2019 of the TUIGroup was prepared for the reporting period from 1 October 2018 to 30 September 2019. Table best viewed in landscape. FY19 Group underlying EBITA result delivered in line with revised guidance 1 due to the MAX grounding, whilst continuing to invest in our strategic transformation. We foster an environment where our different backgrounds, cultures and beliefs are supported and encouraged. This report documents the implementation of the undertaking from November 2017 to … Katanga Mining Announces Limited Resumption of Cobalt Exports. We have implemented a Group compliance programme that includes a range of policies, standards, procedures, guidelines, training and awareness, monitoring and investigations. Companies House Companies House does not verify the accuracy of the information filed (link opens a new window) Sign in / Register . Notes for Editors Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. We seek to make our grievance mechanisms available to the community members impacted by our operations. As a result, we are exposed to a wide range of political, economic, regulatory, social and tax environments. Outside of the inherent risk of commodity prices on unmined reserves/resources, flat price exposure on extracted or trading related positions is usually hedged, when possible. Additionally, governments have sought additional sources of revenue by increasing rates of taxation, royalties or resource rent taxes or may increase sustainability obligations. Where desirable and possible, credit exposure is covered through credit mitigation products. commodity substitutions, fluctuations in global production capacity, global and regional weather conditions, natural disasters and diseases, all of which impact global markets and demand for commodities. We strive to comply with our own health, safety and environmental policies and relevant external laws and requirements. 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. Specific credit risk policy rules apply to open account risk with an established threshold for referral of credit positions by departments to central management. 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. Mostly this entails emphasising certain risks more strongly than other risks rather than the elimination of, or creation of, risks. Community members are often our employees, contractors, procurement partners and service providers. These principal risks and uncertainties should be considered in connection with any forward looking statements in this document as explained on page 251. Glencore Agriculture Limited acquires port term... Read more 2020/08/19. 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. It is the Company’s strategic objective to focus on its people and to conduct safe, reliable and efficient operations. VITERRA UK LIMITED - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity. These include, those arising from (1) interruptions in production, litigation and imposition of penalties and sanctions and (2) having licences and permits withdrawn or suspended while being forced to undertake extensive remedial clean-up action or to pay for government- ordered remedial clean-up actions. Environmental, safety and health regulations may result in increased costs or, in the event of non-compliance or incidents causing injury or death or other damage at or to our facilities or surrounding areas, may result in significant losses. The Group’s credit ratings are currently Baa1 (positive outlook) from Moody’s and BBB+ (stable outlook) from Standard & Poor’s. Our activities depend on technology for industrial production, efficient operations, environmental management, health and safety, communications, transaction processing and risk management. FY19 Full-Year Results . Many developed countries are pledging to stop using fossil fuels (specifically coal) in power generation. VITERRA … Risk appetite - Low. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable IFRSs. We have optimised our bond debt maturity profile to no more than c. $3 billion of bonds maturing per annum. (more…) This supports our identification, understanding and monitoring of emissions, the setting of targets and reporting of projections. The major contributor to the increase in Net debt in 2019, to a level over the $16 billion target cap, was the adoption of the new lease accounting standard on 1 January 2019, which resulted in approximately $1.3 billion of lease liabilities being recognised as at 31 December 2019, which previously would have been accounted for as operating leases. Our Cyber Defence Centre is responsible for day-to-day monitoring of cyber vulnerabilities across the world and driving remediation of threats. Glencore plc, together with its affiliates (“Glencore”) has agreed to accept the Rights Offering proceeds of CDN$7,678,388,000 or the equivalent in Common Shares issued from treasury under the Rights Offering to repay US$5.8 billion of debt owed to Glencore (based on a five day average CDN$/US$ exchange rate as of November 15, 2019, which is 1.32386). The cost of cooperating with investigations and/or defending proceedings can be substantial. Our marketing operations are large in scale, which may make fraudulent, corrupt or other unlawful transactions difficult to detect. In addition, note 26 details our financial and capital risk management approach. This announcement should be read in conjunction with and is not a substitute for reading the full Annual Report. Our licences to operate through mining rights are dependent on a number of factors, including compliance with regulations. Air quality in Mt Isa Air quality in Mt Isa. The development and operating of assets may lead to future upward revisions in estimated costs, delays or other operational difficulties or damage to properties or facilities. This process is supported by the Audit, HSEC and ECC Committees, whose roles include evaluating and monitoring the risks inherent in their respective areas as described on pages 101-108. A transition to a low-carbon economy and its associated public policy and regulatory developments may lead to: Climate change may increase physical risks to our assets and related infrastructure, largely driven from extreme weather events and water related risks such as flooding or water scarcity. As a result, the continued success of our existing operations and our future projects are in part dependent on broad support and a healthy relationship with the communities surrounding our operations as well as our ability to promote diversified and resilient local economies. We operate in countries with less developed political and regulatory regimes. Further information is available on our website at: glencore.com/sustainability/community-and-human-rights. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. A recent example is available on our website at: glencore.com/who-we-are/ governance. IR News; Presentation; Factbook; Webcast; 11 December 2019. There has been a significant increase in litigation (including class action), in which climate change and its impacts are a contributing or key consideration, including administrative law cases, tortious cases and claims brought by investors. net income attributable to equity holders, total recordable injury frequency rate (2018: 3.18). Locally based events could escalate to disputes with regional and national governments as well as with other stakeholders and potentially result in reputational damage and social instability that may affect the perceived and real value of our assets. News News; Insights & stories Insights & stories; Social media Social media; Image & video library Image & video library; Subscribe Subscribe; Media contacts Media contacts; RSS feed RSS feed; Updates regarding Covid-19 Updates regarding Covid-19; Updates regarding illegal mining at KCC Updates regarding … We've operated in Canada for more than 100 years, and have interests in a range of businesses across the country. 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. This risk is more prevalent in certain commodities, such as steel, coal and oil. Mitigating factors - The inverse FX correlation usually provides a partial natural FX hedge for the industrial business. Local health services might be in the early stages of development, or local authorities may not have the resources to cope with the scale of need. In compiling this assessment we have indicated the impact and likelihood of these risks in comparison with a year ago in the chart opposite. The Group's operations comprise around 150 mining and metallurgical sites and oil production assets. While the selected annual report is being downloaded, we want to draw your attention to the Sustainability Report. However, in every case these do not attempt to be an exhaustive list. 6. Further information is available at: glencore.com/sustainability/climate-change, 11. It is also possible that other authorities may open investigations into the Group and the final scope and outcome of the investigations listed above is not possible to predict and estimate. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards Board’s “Framework for the preparation and presentation of financial statements”. Outstanding balances at period end are unsecured and settlement occurs in cash (see notes 11, 13 and 24). Further details will also be published in our 2019 sustainability report. Risk description and potential impact - Financial assets consisting principally of receivables and advances, derivative instruments and long-term advances and loans can expose us to concentrations of credit risk. We have invested in global IT security platforms in order to proactively monitor and manage our cyber risks. 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. 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. Counterparty credit and performance. English English français REPORTS & PUBLICATIONS. Directors of Glencore India Private Limited are Pascal Albisser, Kunal Ahuja, Jayaram Rajan,. Our employees and contractors are fundamental to our success. In 2019 we saw solid results in challenging pricing conditions for our key commodities, supported by an excellent oil marketing performance. Producer country currencies tend to increase in correlation with relevant higher commodity prices. The costs associated with compliance with these laws and regulations, including the costs of regulatory permits, are substantial and increasing. Certain investors may also be familiar with the risk factors that are published in the Group debt or equity prospectuses or listing documents. Covantis initiative announces technology partner - ConsenSys. The transaction also involves a payment from Orsted to Glencore. Their employing company may not be able to satisfactorily renegotiate its collective labour agreements when they expire and may face tougher negotiations or higher wage demands than would be the case for non-unionised labour. Risk description and potential impact - FX changes are usual but are often difficult to predict. Together these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service. Where possible foreign exchange (FX) exposure to non-operating FX risks is hedged. The following responsibility statement is repeated here solely for the purpose of complying with DTR 6.3.5. Mitigating factors - We continue to maintain focus on cost discipline and achieving greater operational efficiency. Our diversity, in terms of geographical locations, working conditions, organisational cultures and workforce, means that we need to take a local approach to transforming attitudes towards catastrophic hazard management, including safety and health practices as well as resolving environmental challenges. Health and safety. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. The suspension or loss of our permits or licences to operate could have a material adverse effect on the Group and could also preclude Glencore from participating in bids and tenders for future business and projects, therefore affecting the Group’s long-term viability. 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. Our failure to access funds (liquidity) would severely limit our ability to engage in desired activities. Investigations or proceedings could lead to reputational damage, the imposition of material fines, penalties, redress or other restitution requirements, or other civil or criminal sanctions on the Group (and/or on individual employees of the Group), the curtailment or cessation of operations, orders to pay compensation, orders to remedy the effects of violations and/or orders to take preventative steps against possible future violations. We participate in a wide range of public policy discussions on carbon and energy issues and seek to ensure that there is a balanced debate with regard to the ongoing use of fossil fuels. The illegal miners were working two galleries (underground tunnels) in benches overlooking the extraction area. 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. In December 2019, the Group was notified that the United Kingdom Serious Fraud Office had opened an investigation into suspicions of bribery in the conduct of business of the Group. The transaction involves Glencore taking over a number of contracts, including the right to use 3bcm of annual LNG regasification capacity at the Gate terminal in Rotterdam until 2031 as well as a number of LNG supply contracts. Copper Refineries Pty Ltd Copper Refineries Pty Ltd. Glencore Port Operations Glencore Port Operations. Our scenario planning and stress testing may accordingly prove to be optimistic, particularly in situations where material negative events occur in close proximity. There were no other long-term benefits or share-based payments to key management personnel (2018: $Nil). Skip to main content. Covantis launches as legal entity, announces CEO and executiv... Covantis launches as legal entity, announces CE... Read more 2020/01/23. In light of the Group’s extensive funding activities, maintaining investment grade credit rating status is a financial priority. Glencore, which owns … In 2019, we also published our Payments to Governments report. 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. , according to exposure and impact, is detailed on the Glencore website which it may be relevant, and... 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