Glencore & Schneider Electric: Sustainable Copper Sourcing
Copper is a material with high procurement demand, playing a critical role throughout global supply chains and manufacturing.
According to S&P Global copper demand is set to double by 2035.
The surge in demand is being driven by electrification and the clean energy shift, where copper is essential.
However, the current dominant procurement and sourcing practices for copper present sustainability hurdles.
Mining contributes to a significant 7% of global CO2 emissions, with scope 3 emissions making up 75% to 95% of total emissions in the sector.
Addressing what's been coined the ‘copper contradiction’, Schneider Electric and Glencore are partnering to transform copper procurement, enhancing its sustainability and circularity.
Making copper procurement more sustainable
Copper is an important material for Schneider Electric, with the green leader purchasing over 100,000 tonnes annually for its range of products and solutions.
Through the groundbreaking partnership, the company will procure raw materials directly from Glencore, ensuring responsible sourcing and recyclable content for distribution to its European factories.
In exchange, Schneider Electric offers Glencore a blend of automation, digital technology, consultancy, and electrification technology to improve global operations and sustainability efforts.
These technologies cover four main areas:
1. Sustainable procurement of capital equipment
Glencore has developed high-efficiency, low-carbon procurement standards for capital equipment with Schneider Electric’s support, in line with the Zero Carbon Project.
2. Enhanced energy consumption reporting
Schneider Electric helps Glencore to heighten its energy efficiency and develop fuel-switching projects. Thanks to Schneider Electric’s analytics, Glencore can now monitor and report energy use with improved accuracy.
3. Lowering CO2 emissions in copper supply
Schneider Electric’s provision of industrial digital transformation services and consulting aims to reduce the carbon intensity of Glencore’s copper supplies. Tools like the AVEVA PI System and Operations Control, along with ETAP for electrical simulation, allow for maximising efficiency and renewable energy use in mining.
4. Automating and standardising operations
Glencore benefits from Schneider Electric's expertise in developing IT/OT corporate standards and digital transformation applications including digital twins, central control, and predictive analytics.
Schneider Electric also collaborates with Glencore and Li-Cycle on lithium-ion battery recycling.
The manufacturer is also pioneering a take-back program for copper and electronic waste, recycling used materials in collaboration with Glencore.
“We are delighted to work with Schneider Electric in a comprehensive 360-degree collaboration," adds Jyothish George, Head of Copper & Cobalt Marketing, Glencore.
“At the same time, Schneider Electric is exploring increased use of recycled content in their products, as well as exploring closed loop solutions that enhance the circularity of their products and supply chains.
"This collaboration will enable both companies to establish circular supply chains, lowering their respective carbon footprints."
Rob Moffitt, President of Mining, Minerals & Metals at Schneider Electric agrees, adding:
“In the past, lowering emissions has been a challenge due to the complexity of supply chains, however, by leveraging digitisation we are able to close the material loop and boost our circularity.
"This, together with integration of power and process all along the asset life cycle, is a critical component in our race towards net zero.
"This collaboration with Glencore reaffirms our commitment to helping companies reduce their Scope 1,2, and 3 emissions following the launch of our supply chain decarbonisation program, Materialize, earlier this year.”
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