Glencore investors are moving to force more disclosure about their coal production plans as the world’s most profitable fossil fuel miners face questions about their climate impact.
A group of shareholders, including Legal & General Investment Management and HSBC Asset Management, have filed resolutions seeking more detail on the matter. Glencores Annual meeting in May.
The resolution stated that “disclosure of how the company’s projected steam coal production aligns with the objectives of the Paris Agreement . I am requesting information.
Glencore is the world’s most profitable public company miner of thermal coal. But it eventually adopts a climate target that will curb the coal business.
Dror Elkayam, a global ESG analyst at LGIM, which owns about 1.5% of Glencore’s outstanding shares, said the resolution was important to help investors assess risk.
“We want to be able to look under the hood and assess how the company is positioned in a low-carbon environment,” said Elkayam. “We do not believe there is sufficient evidence that Glencore’s steaming coal production plans are in line with the Paris Agreement goals,” he added.
Glencore’s coal division very informative Last year — contributed $8.9 billion to the company’s earnings in the first half alone, helping drive shareholder returns to record highs.
When the energy crisis triggered by Russia’s invasion of Ukraine pushed prices to record highs, Glencore’s coal business thrived as it produced high-quality thermal coal used in European power plants. did.
However, shareholders have questioned how coal operations fit into a climate plan that includes a target of reducing direct and indirect emissions by 50% relative to 2019 levels by 2035. I’m here.
Shareholders backing the new resolution include LGIM, HSBC, Vision Super and the Swiss-based Ethos Foundation, which represents pension funds Pensionskasse Post and Bernische Pensionsskasse, which collectively manage $2.2 trillion .
“It’s very disappointing that Glencore continues to invest in thermal coal,” said Michael Wilsh, chief investment officer at Australian retirement fund Vision Super. He added that Glencore is “well-positioned” for its exposure to key commodities in the energy transition, such as copper and nickel.
Glencore expects to produce about 110 million tonnes of coal annually from 2023 to 2025, similar to 2022 levels.
The company has said it will limit coal production to 150 million tonnes a year, but has not disclosed a specific annual target beyond 2025.
Concerns over Glencore coal production flared up At last year’s annual meeting, nearly a quarter of shareholders voted against the company’s climate action plan.
That’s what prompted the review. It was published Glencore said it will provide more details in its climate report due in March.
Glencore’s 2021 direct and indirect emissions reached 280 million tonnes of CO2 equivalent. This is the same level as in Spain.
The company has a short-term goal of reducing its direct and indirect emissions by 15% below 2019 levels by 2026 and achieving net zero emissions by 2050.
“Glencore will publish its next climate progress report in March, which will provide an update on progress against its 2020 climate strategy.” British charity.
