Glencore & Schneider Partner on Copper Supply Chain
Copper is one of the most in-demand materials in the world, with vital importance to global supply chains and manufacturing.
S&P Global estimates demand for it will double by 2035.
Driving this skyrocketing demand is electrification and the clean energy transition, where copper plays an essential role.
Despite this prominence in aiding electrification, the methods through which copper is sourced and distributed are riddled with sustainability challenges. The mining sector is responsible for as much as 7% of global CO2 emissions and scope 3 emissions accounting for 75% to 95% of its overall carbon emissions.
Countering the so-called 'copper contradiction' is a new partnership between sustainability leader Schneider Electric and Glencore, one of the world's largest globally diversified natural resource companies.
Schneider Electric is helping Glenore transform its copper supply chain and enhance decarbonisation efforts through digital technologies and innovative manufacturing approaches.
A new means of sourcing copper
Copper is essential to Schneider Electric's supply chain, with the company procuring more than 100,000 tonnes annually for the manufacturing of its products and solutions.
In the new partnership Supply Electric will directly acquire raw materials from Glencore and distribute them through its network of sub-suppliers to its European factories, prioritising the use of responsibly sourced materials with high recyclable content.
In return Schneider Electric will provide Glencore with a mix of automation, digitalisation, consultancy support and electrification technologies, to enhance its global operations and sustainability. This support can be broken down into four core areas:
1. Sustainable procurement of capital equipment
Schneider Electric has helped Glencore develop high-efficiency, low-carbon procurement specifications for capital equipment supporting ‘best practices’ aligned to Schneider Electric’s Zero Carbon Project.
2. Enhanced energy consumption reporting
Schneider Electric is also helping Glencore develop business cases for energy efficiency measures and fuel switching.
Glencore will also be able to monitor and report on its energy consumption more accurately, through the analytics of the Power and Energy Management Systems provided by Schneider Electric.
3. Lowering CO2 output of copper supplies
To support Glencore in improving efficiency and lowering carbon intensity of its raw material supply, Schneider Electric is providing industrial digital transformation services and process electrification consulting services.
The company is leveraging solutions including its AVEVA PI System and Operations Control which analyses process and energy data and its ETAP electrical simulation (ETAP) which simulates and optimises power distribution.
The simulation can handle varying power inputs without disrupting the overall distribution network in mining operations, making it incredibly beneficial to the sector's renewable energy complexities.
4. Implementing automation and standardisation
Schneider Electric is also helping Glencore develop their IT/OT corporate standards in addition to developing applications in the company for digital twins, central control and predictive analytics.
These technologies have been deployed by Schneider Electric within Glencore Data Centers, energy management and process automation systems.
“The relationship between Schneider Electric and Glencore is built on the joint aim of decarbonizing copper production and building resilience in its supply,” says Rob Moffitt, President of Mining, Minerals & Metals at Schneider Electric.
“In the past, lowering emissions has been a challenge due to the complexity of supply chains, however, by leveraging digitization 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 decarbonization program, Materialize, earlier this year.”
Schneider Electric is also an existing partner in the recycling of Lithium-Ion Batteries, working closely with Glencore and their portfolio company Li-Cycle, a major North American and European battery recycler.
Schneider Electric is also working towards a copper and electronic waste take-back program where the remnants of used materials will be returned to Glencore for recycling.
“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."
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