Glencore PLC
GLNCY
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exclusion reasons
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This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Glencore PLC is a global diversified natural resource company whose operations span the extraction, processing, and trading of fossil fuels. Its fossil fuel portfolio includes significant coal mining operations, oil production assets, and a vast trading division that markets these commodities worldwide. In 2023, the company reported that its Industrial Assets segment, which includes its owned coal and oil production, generated $13.2 billion in adjusted EBITDA, underscoring the materiality of fossil fuels to its core business.
The company's conduct in operating this portfolio has been marked by severe legal and regulatory failures. In 2022, Glencore pleaded guilty to charges of bribery and market manipulation spanning over a decade, agreeing to pay approximately $1.1 billion in fines to U.S. and U.K. authorities. The U.S. Department of Justice cited "corruption across the company's oil trading business in seven countries" and "manipulation of two benchmark oil price products." These systemic governance failures are directly tied to its fossil fuel operations.
Glencore has announced intentions to run down its coal mines by the mid-2040s but has not committed to a Paris-aligned phase-out of fossil fuel production or trading. Its continued high-level involvement across the fossil fuel value chain, combined with a documented pattern of operating outside legal and ethical norms to advance that business, defines its exclusion.
Glencore plc is one of the world's largest producers and exporters of seaborne thermal and metallurgical coal. The company is the biggest producer of thermal coal in Australia and its coal operations are a primary business activity, integral to its identity as a global diversified natural resource company.
Glencore has a documented pattern of severe environmental and human rights violations connected to its mining operations. In Peru and Colombia, the company has been repeatedly accused of causing significant environmental damage and human rights abuses at its mines. These operations have been the subject of international arbitration, including a case submitted to the ICSID concerning alleged breaches of a bilateral investment treaty between Colombia and Switzerland.
The company's conduct extends beyond operational impacts to systemic governance failures. In 2022, Glencore agreed to pay $1.185 billion in penalties to resolve global bribery and market manipulation cases. This record of serious misconduct, coupled with its central role in the global coal trade, defines the company's operations.
Glencore PLC operates a global portfolio of mining and commodity trading assets with a documented pattern of environmental damage across multiple continents. The company has faced formal findings of failure to prevent and mitigate toxic spills, as well as ongoing litigation and complaints related to contamination.
In January 2021, the UK government accepted a human rights complaint against Glencore regarding a toxic wastewater spill at its Badila oilfield in Chad. This was followed by a November 2024 finding from the British government that Glencore UK failed to take appropriate measures to prevent and mitigate that 2018 spill. In Canada, a class action lawsuit was filed in late 2023 against Glencore and the Quebec government over emissions from its Horne copper smelter in Rouyn-Noranda. In Peru, a 2023 report titled "A Toxic Legacy" provided recent evidence of environmental impacts from Glencore's mining activities, while communities near its Antapaccay copper mine have alleged exposure to toxic heavy metals.
The company's environmental footprint is linked to its core extractive operations. MSCI has assessed controversies relating to water access at the Cerrejón coal mine in Colombia, a joint venture where Glencore holds a significant stake. This pattern of incidents across its owned and joint venture assets indicates systemic issues in environmental management within its global operations.
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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