Glencore 'is in dark ages' compared with rivals, says NGO bo
Posté: Lun 23 Mai 2011 10:47
Glencore 'is in dark ages' compared with rivals, says NGO boss
Glencore contests claims that it fails to measure up to other major mining firms on corporate responsibility, climate policy and CO2 emissions
Fiona Harvey and Helen Pidd guardian.co.uk Thursday 19 May 2011 20.44 BST
Glencoure has a 73% stake in the Mopani copper mine in northern Zambia. Photograph: Jean-Claude Coutausse/Bloomberg News
Extracting minerals, coal and oil from the earth is never a clean business, but Glencore's vast mining operations have left the company open to mounting criticism as it swaps its private Swiss partnership structure for public company status.
From Bolivia, where Glencore is accused of allowing harmful waste into local water supply, to Zambia, where Glencore is alleged to have inflated its operating costs to reduce its tax bill, Glencore's interests in some of the world's most remote regions and in countries where democratic institutions are feeble have raised questions over the company's ethical and environmental performance.
Andreas Missbach, managing director of Berne Declaration, an NGO in Switzerland where the commodities giant is based, said Glencore stood out against others in the sector. "In terms of corporate responsibility, climate policy, CO2 emissions, Glencore is still in the dark ages compared to other major mining firms."
Glencore has strongly contested these claims and is producing an annual sustainability report in an attempt to silence its critics. Although a spokesman said the company was legally limited in what it could say publicly because of the flotation, it has previously answered many of the claims against it. In the case of the Bolivian river pollution, the company has said it was an accidental pipe rupture that it immediately repaired. In Zambia, the company said when the complaint surfaced, it paid the correct amount of tax. It said claims it had not done so were based on "flawed analysis", carried out without visiting the mine.
The company has been accused of a string of failures, including taking advantage of the lack of governance in Democratic Republic of the Congo to exploit mining concessions, and failing to adhere to safety standards in mines there. Two years ago the commodities trader paid a cash settlement to Aluminium Bahrain to resolve what it called a "controversy" over allegations of improper payments, although Glencore denies it ever paid bribes.
A report last month based on publicly available negative news stories from sources including NGO websites and blogs listed more than 20 accusations against the company.
There are questions over whether Glencore benefits people in the countries where it operates. "Take Zambia," said Missbach. "Glencore has a 73% stake in the Mopani copper mine there, yet they pay royalties to Zambia of just 0.6%. Meanwhile, Zambia is number 150 out of 169 on the UN's Human Development Index. The scandal is that this is not a scandal."
Roger Moody, director of consultancy Nostromo Research, added the Mopani mine "raises serious questions in regards to its land use, safety record, and air and water pollution".
Glencore has admitted the mine had a poor environmental record when it was acquired, but is taking steps to clean up. It rejects claims by two Swiss NGOs questioning safety at its Congolese mines, saying the problems were with artisanal miners with whom it has no relationship.
The commodities giant is sensitive over charges of social and environmental failings. Oliver Classen, of Berne Declaration, recalls an unexpected phone call in 2008 from the famously low-profile chief executive, Ivan Glasenberg, after the award of a satirical prize to the company for poor environmental and social responsibility. "I initially didn't believe it was him – he was the most invisible business figure in Switzerland, if not the world. He was thoroughly irritated by the award. He insisted Glencore behaved impeccably."
"There's a lot we don't know, and a great deal we ought to know that has not been revealed," said Moody. But he doubts whether being a public company will result in Glencore being more public about its operations.
Glencore contests claims that it fails to measure up to other major mining firms on corporate responsibility, climate policy and CO2 emissions
Fiona Harvey and Helen Pidd guardian.co.uk Thursday 19 May 2011 20.44 BST
Glencoure has a 73% stake in the Mopani copper mine in northern Zambia. Photograph: Jean-Claude Coutausse/Bloomberg News
Extracting minerals, coal and oil from the earth is never a clean business, but Glencore's vast mining operations have left the company open to mounting criticism as it swaps its private Swiss partnership structure for public company status.
From Bolivia, where Glencore is accused of allowing harmful waste into local water supply, to Zambia, where Glencore is alleged to have inflated its operating costs to reduce its tax bill, Glencore's interests in some of the world's most remote regions and in countries where democratic institutions are feeble have raised questions over the company's ethical and environmental performance.
Andreas Missbach, managing director of Berne Declaration, an NGO in Switzerland where the commodities giant is based, said Glencore stood out against others in the sector. "In terms of corporate responsibility, climate policy, CO2 emissions, Glencore is still in the dark ages compared to other major mining firms."
Glencore has strongly contested these claims and is producing an annual sustainability report in an attempt to silence its critics. Although a spokesman said the company was legally limited in what it could say publicly because of the flotation, it has previously answered many of the claims against it. In the case of the Bolivian river pollution, the company has said it was an accidental pipe rupture that it immediately repaired. In Zambia, the company said when the complaint surfaced, it paid the correct amount of tax. It said claims it had not done so were based on "flawed analysis", carried out without visiting the mine.
The company has been accused of a string of failures, including taking advantage of the lack of governance in Democratic Republic of the Congo to exploit mining concessions, and failing to adhere to safety standards in mines there. Two years ago the commodities trader paid a cash settlement to Aluminium Bahrain to resolve what it called a "controversy" over allegations of improper payments, although Glencore denies it ever paid bribes.
A report last month based on publicly available negative news stories from sources including NGO websites and blogs listed more than 20 accusations against the company.
There are questions over whether Glencore benefits people in the countries where it operates. "Take Zambia," said Missbach. "Glencore has a 73% stake in the Mopani copper mine there, yet they pay royalties to Zambia of just 0.6%. Meanwhile, Zambia is number 150 out of 169 on the UN's Human Development Index. The scandal is that this is not a scandal."
Roger Moody, director of consultancy Nostromo Research, added the Mopani mine "raises serious questions in regards to its land use, safety record, and air and water pollution".
Glencore has admitted the mine had a poor environmental record when it was acquired, but is taking steps to clean up. It rejects claims by two Swiss NGOs questioning safety at its Congolese mines, saying the problems were with artisanal miners with whom it has no relationship.
The commodities giant is sensitive over charges of social and environmental failings. Oliver Classen, of Berne Declaration, recalls an unexpected phone call in 2008 from the famously low-profile chief executive, Ivan Glasenberg, after the award of a satirical prize to the company for poor environmental and social responsibility. "I initially didn't believe it was him – he was the most invisible business figure in Switzerland, if not the world. He was thoroughly irritated by the award. He insisted Glencore behaved impeccably."
"There's a lot we don't know, and a great deal we ought to know that has not been revealed," said Moody. But he doubts whether being a public company will result in Glencore being more public about its operations.