The recent announcement of Schneider Electric’s partnership with Glencore to decarbonize and transform the copper supply chain is more than just a corporate alignment; it marks a potentially seismic shift in how the global copper industry operates. As demand for copper is expected to double by 2035 due to the green energy transition, the collaboration underscores a race against time—and emissions.
But while the two companies have committed to reducing carbon footprints and enhancing circularity in their supply chains, the broader impact of this partnership could stretch beyond environmental goals. The long-term outcome may alter the structure of the copper market and elevate sustainability as a critical factor in capital procurement decisions across the sector.
Copper’s Decarbonization Dilemma
Copper is often dubbed the “metal of electrification” due to its unparalleled conductivity and crucial role in renewable energy technologies, including wind turbines, solar panels, and electric vehicles. S&P Global’s forecast that copper demand will double by 2035 speaks to the metal’s central role in driving the global shift toward greener energy. However, mining, processing, and transporting copper are highly carbon-intensive activities, responsible for as much as 7% of global CO₂ emissions.
This puts companies like Glencore and Schneider Electric in a unique position: not only are they suppliers and end-users of copper, but they are also tasked with solving one of the biggest dilemmas of our time—how to meet skyrocketing demand without exacerbating the climate crisis.
“The relationship between Schneider Electric and Glencore is built on the joint aim of decarbonizing copper production and building resilience in its supply,” said Rob Moffitt, Schneider Electric’s president of mining, minerals & metals, highlighting the deep integration between both companies.
The Circularity Advantage
One of the most compelling aspects of this partnership is the focus on circularity—a key tenet of Schneider Electric’s Zero Carbon project. By developing a copper and electronic waste take-back program, Schneider Electric aims to extend the lifecycle of raw materials while reducing their environmental impact. The idea is to return residual copper and electronic waste back to Glencore for recycling, thus establishing a closed-loop system that could set a new precedent for how industrial supply chains operate.
“Schneider Electric is exploring increased use of recycled content in its products, as well as closed-loop solutions that enhance the circularity of their products and supply chains,” stated Jyothish George, head of copper and cobalt marketing at Glencore.
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In a sector often criticized for its inefficiencies and heavy reliance on virgin materials, this push toward recycling and reusability is a crucial step. If successful, it could inspire broader adoption of circular supply chains, which are not only greener but can also reduce costs and improve long-term supply security.
Digital Tools Driving Efficiency
At the heart of this partnership is the digitization of energy management and industrial processes. Schneider Electric has committed to providing Glencore with power and energy management systems equipped with measurement and analytics tools. These tools will allow Glencore to monitor and report on its energy consumption more precisely, identifying areas for fuel switching and energy efficiency improvements.
This digital transformation could serve as a blueprint for other players in the mining sector, many of whom are grappling with outdated, energy-hungry equipment. By offering process electrification consulting services and industrial digital transformation solutions, Schneider Electric is helping Glencore modernize its operations and cut emissions at every step of the value chain.
Supply Chain Resilience Meets Investor Pressure
The partnership’s focus on building resilience into the copper supply chain is particularly timely given the growing concerns over global resource scarcity. As the demand for copper intensifies, driven by electrification, supply constraints will become an even greater challenge for manufacturers reliant on the metal. Sourcing copper through sustainable and resilient supply chains will likely become a key differentiator for companies in the near future.
Additionally, investors are increasingly favoring companies with strong environmental, social, and governance (ESG) credentials. By aligning themselves with decarbonization efforts, both Schneider Electric and Glencore are positioning themselves as leaders in sustainable mining practices. This could not only drive long-term shareholder value but also shield both companies from the growing regulatory pressures surrounding carbon emissions.
Future Implications for the Copper Market
The success of this partnership could have far-reaching implications for the copper market. As demand outstrips supply and prices fluctuate, companies that can offer sustainably sourced copper at scale will likely enjoy a competitive edge.
This could lead to a bifurcation in the market, with premiums attached to copper sourced through low-carbon, circular supply chains. Companies that fail to pivot toward sustainability may face higher costs and regulatory hurdles, further widening the gap between early adopters of green practices and laggards.
For Schneider Electric and Glencore, the stakes are high. But if they succeed, they won’t just be decarbonizing a supply chain—they’ll be setting a new standard for the industry.
