Glencore’s Approach to Coal Transition and Nature Restoration

Glencore cuts emissions 4% as coal winds down and AI enters land restoration

Glencore reported a 4% reduction in combined Scope 1, 2, and 3 emissions for 2025. Total emissions fell to 399.9 million tonnes CO₂e from 416.2 million tonnes the previous year. This figure excludes Elk Valley Resources. The drop stems largely from managed declines in thermal coal production.

At the same time, the mining company completed a machine learning biodiversity tool. The system uses satellite imagery to measure ecosystem changes across mine sites. Glencore calls it a “No Net Loss” methodology. It aims to support mine closure planning and land rehabilitation at scale.

These developments mark concrete progress in an industry under pressure to reconcile resource extraction with climate and nature commitments. For UK businesses exposed to mining supply chains, or those assessing suppliers under Procurement Policy Note 06/21, the changes illustrate how upstream sectors are adopting measurable environmental safeguards.

Emissions trajectory and coal phase-down commitments

Glencore operates under a Climate Action Transition Plan covering 2024 to 2026. The plan sets four priorities: reducing operational emissions, phasing down coal, expanding metals for energy transition, and developing recycling models. Emissions targets are anchored to a restated 2019 baseline.

The company aims for a 15% reduction by 2026, 25% by 2030, and 50% by 2035 across all three scopes. Net zero by 2050 remains an aspiration contingent on policy support. The 2025 figures suggest Glencore is on track for its 2026 milestone.

Thermal coal drives much of the emissions profile. Glencore capped new thermal coal production in 2019 and committed to no greenfield investments. Over the past decade, Australian coal operations cut over 28 million tonnes CO₂e through methane capture and flaring. The company frames this as a “responsible phase-down” aligned with just transition principles, prioritizing community support and advance closure notice.

However, critics including the Australasian Centre for Corporate Responsibility argue the 2019 baseline is inflated. They claim coal emissions remain broadly flat through the 2020s and diverge from the International Energy Agency’s Net Zero Emissions pathway by approximately 1.6 billion tonnes CO₂e by 2050. The Institute for Energy Economics and Financial Analysis notes that methane abatement focuses on underground mines, while open-cut operations account for 86% to 93% of Australian coal output and receive limited attention.

Machine learning tool standardizes biodiversity assessment

Glencore manages roughly 20,000 square kilometers of land globally. As of December 2025, 8.4% was disturbed by mining activity. During 2025, the company restored 26.7 square kilometers and newly disturbed 24.5 square kilometers. That represents a net gain of 2.2 square kilometers restored. By year end, 30% of all disturbed land had been rehabilitated.

The new biodiversity methodology was developed in 2025 with external consultants. It uses machine learning algorithms and satellite imagery to detect ecological change across sites. The system provides standardized ecosystem assessments, enabling comparison between locations and supporting site-specific rehabilitation plans.

This tool aligns with Glencore’s adoption of the Taskforce on Nature-related Financial Disclosures LEAP approach, which it has used since 2023. TNFD’s Locate, Evaluate, Assess, Prepare framework helps companies identify sites near high-integrity ecosystems or biodiversity hotspots. The machine learning system offers a way to operationalize those assessments at scale.

Glencore applies a mitigation hierarchy throughout project lifecycles: avoid, minimize, restore, and offset. The company committed in its 2024 Sustainability Report to “responsibly minimize and mitigate our impacts on nature and seek opportunities to achieve no net loss of biodiversity.” The AI-driven tool is designed to measure progress against that commitment.

Implications for UK supply chains and procurement compliance

Many UK manufacturers and contractors rely on metals from large mining groups. Copper, nickel, and cobalt sourced from companies like Glencore feed into everything from electrical components to battery production. Consequently, upstream emissions and biodiversity practices flow through to downstream supply chains.

Public sector suppliers face mandatory carbon reporting under PPN 06/21. From April 2024, bidders for contracts above £5 million must publish a Carbon Reduction Plan showing net zero commitment, emissions baseline, and reduction targets. Scope 3 emissions, which include purchased goods, often dominate the total for SMEs. Therefore, the emissions intensity of mined materials becomes a direct procurement concern.

Glencore’s reported 4% reduction affects the embedded carbon profile of its products. Buyers tracking Scope 3 emissions can, in theory, attribute lower carbon intensity to materials sourced from suppliers demonstrating measurable declines. However, verification matters. Third-party assurance and independent satellite monitoring provide confidence that reported figures reflect operational reality.

Similarly, biodiversity considerations are entering tender criteria. While not yet mandatory for most commercial contracts, major corporates and public bodies increasingly ask suppliers about nature-related risks and dependencies. The Taskforce on Nature-related Financial Disclosures framework is gaining traction in reporting. Suppliers who source from mining companies with transparent, tech-enabled biodiversity monitoring may find themselves better positioned in competitive bids.

Thermal coal remains a reputational and practical issue. Some UK businesses have adopted coal-exclusion policies for investment or procurement. Others face pressure from investors or customers to demonstrate supply chain decarbonization. Glencore’s coal phase-down schedule, alongside its expansion in transition metals, reflects the broader industry pivot. Companies assessing long-term supplier relationships will want clarity on coal exit timelines and credibility of interim targets.

Moreover, the “just transition” language matters. Mine closures affect communities, employment, and regional economies. UK businesses sourcing from mining regions may encounter questions about social risk in supply chains. Advance notice, community engagement, and workforce transition support reduce disruption. Glencore’s stated commitment to these principles offers a template, though independent monitoring of outcomes remains necessary.

What the numbers tell us about Glencore’s progress

• Total Scope 1, 2, and 3 emissions fell 4% year-on-year to 399.9 million tonnes CO₂e in 2025, down from 416.2 million tonnes in 2024.
• The company restored 26.7 square kilometers of land in 2025, exceeding the 24.5 square kilometers newly disturbed by operations.
• Thirty percent of all disturbed land was rehabilitated by the end of 2025, with a net gain of 2.2 square kilometers restored versus disturbed.
• Glencore targets a 15% emissions reduction by 2026, 25% by 2030, and 50% by 2035 against a restated 2019 baseline, with net zero by 2050 conditional on policy support.
• Australian coal operations achieved over 28 million tonnes CO₂e reduction over ten years through methane capture and flaring, though open-cut mines receive less abatement focus.
• A new machine learning biodiversity tool uses satellite imagery to standardize ecosystem assessments across global sites, supporting TNFD compliance and mine closure planning.
• No new thermal coal production capacity has been added since a 2019 cap, and no greenfield thermal coal investments are planned.

Commercial and compliance considerations for UK SMEs

Businesses assessing their own supply chains should consider how upstream emissions reductions translate into Scope 3 accounting. Consequently, selecting suppliers with credible, verified carbon trajectories can improve a company’s overall emissions profile. This becomes material when responding to PPN 06/21 requirements or when large customers demand supply chain transparency.

Therefore, due diligence on supplier data quality matters. Restated baselines, as critics highlight with Glencore’s 2019 figures, can obscure real progress. Independent assurance, third-party audits, and alignment with Science Based Targets initiative criteria offer stronger confidence. SMEs preparing carbon reduction plans for public sector tenders should verify that supplier claims withstand scrutiny.

Biodiversity disclosure is less mature than carbon reporting but moving quickly. TNFD released its final recommendations in September 2023. Early adopters include financial institutions and large corporates. UK businesses with land holdings, agricultural supply chains, or operations near protected sites face growing expectations. Mining suppliers using AI-driven biodiversity tools provide more granular data than traditional manual surveys, potentially reducing risk in due diligence.

For SMEs in construction, manufacturing, or engineering, metals procurement decisions increasingly carry environmental weight. Specifying low-carbon steel, recycled copper, or materials from suppliers with verified biodiversity strategies can differentiate bids. Meanwhile, coal exposure in supply chains may trigger exclusion from certain contracts or investor portfolios. Understanding supplier transition plans and coal exit schedules mitigates this risk.

Training and internal capability also matter. Interpreting supplier sustainability reports, understanding Scope 3 accounting methodologies, and evaluating third-party assurance require technical knowledge. Many UK SMEs lack dedicated sustainability staff. Structured training on emissions accounting and supply chain due diligence can close this gap, ensuring procurement teams make informed decisions.

Regulatory trends point toward stricter disclosure requirements. The UK government has consulted on expanding mandatory climate reporting to smaller companies. Biodiversity reporting may follow a similar path as TNFD adoption spreads. Early preparation, including robust supplier engagement and data collection, positions businesses ahead of compliance timelines. Moreover, demonstrating proactive management of environmental supply chain risks can strengthen relationships with banks, insurers, and customers.

Industry context and broader mining sector trends

Glencore’s approach reflects wider mining industry dynamics. Investor pressure, regulatory scrutiny, and access to capital all push companies toward measurable environmental commitments. The transition from fossil fuels to renewable energy increases demand for copper, lithium, nickel, and cobalt. Mining companies expanding production of these metals face intense scrutiny over how extraction occurs.

Technology plays a growing role. Satellite monitoring, machine learning, and remote sensing reduce the cost and increase the accuracy of environmental assessments. Traditional biodiversity surveys require field teams and years of data collection. AI-driven tools can process satellite imagery across thousands of hectares in weeks, identifying vegetation change, water quality shifts, and habitat fragmentation.

This matters for UK businesses because it changes the baseline for supplier transparency. Ten years ago, detailed biodiversity data from remote mine sites was rare. Today, technology makes it feasible and increasingly expected. Companies that lag risk reputational damage and lost contracts. Those that adopt these tools early gain competitive advantage in procurement processes.

Coal remains the sticking point. Global thermal coal demand has proven more resilient than many forecasts predicted, particularly in Asia. Mining companies with coal assets face a dilemma: exit too quickly and strand assets, harming shareholder returns and communities; exit too slowly and face investor revolt and stranded demand. Glencore’s managed decline attempts to balance these pressures, though critics argue the pace remains insufficient for Paris Agreement alignment.

Just transition principles add complexity. Mine closures without adequate planning devastate local economies. Advance notice, retraining programs, and economic diversification support reduce social harm. UK businesses sourcing from mining regions should assess whether suppliers demonstrate genuine community engagement or merely publish commitments. Independent monitoring by civil society organizations and transparency in closure planning provide indicators.

Where to find further detail and authoritative guidance

UK businesses seeking deeper understanding of supply chain emissions and biodiversity risk can consult several authoritative sources. The government’s guidance on Procurement Policy Note 06/21 explains carbon reduction plan requirements for public sector contracts. This includes Scope 3 accounting expectations and net zero commitment standards.

The Taskforce on Nature-related Financial Disclosures offers comprehensive resources on nature-related risk assessment. The LEAP approach and sector-specific guidance help companies identify biodiversity dependencies and impacts. TNFD’s framework is becoming a global standard for nature disclosure, comparable to the Task Force on Climate-related Financial Disclosures for carbon.

For emissions accounting methodology, the Greenhouse Gas Protocol provides the foundational standards for Scope 1, 2, and 3 calculations. Understanding these standards helps businesses evaluate supplier data quality and prepare their own carbon footprints. The protocol’s Scope 3 guidance specifically addresses purchased goods and services, the category where mining emissions appear for most UK SMEs.

The International Energy Agency’s Net Zero by 2050 roadmap sets out sector-specific pathways for emissions reduction. This includes coal phase-out schedules and critical minerals demand projections. Comparing supplier commitments against IEA benchmarks reveals whether targets align with climate science or fall short.

Finally, expert support on ESG compliance and supply chain due diligence can help UK SMEs navigate complex sustainability requirements. Professional advice ensures that procurement decisions account for environmental risk while maintaining commercial viability and competitive positioning.