Glencore under increasing pressure to be more transparent about coal business plans
Mining giant Glencore is under increasing pressure to be more transparent about plans for its coal business.
Investors including Legal & General and HSBC have signed a resolution, to be voted on at Glencore’s annual meeting in May, asking it to show how its development of thermal coal mines meets the goals in the 2015 Paris climate agreement, which aims to keep global warming to 1.5C.
‘A higher degree of transparency is necessary to clarify how the company’s exposure to thermal coal… corresponds with its net zero commitment,’ said Dror Elkayam, a Legal & General Investment Management analyst.
Green screening: Investors have signed a resolution asking Glencore to show how development of its thermal coal mines meets the goals in the Paris climate agreement
Thermal coal is burned to produce electricity and is a major contributor to greenhouse gas emissions.
Glencore’s coal division raked in £7.5billion in the first half of last year after a price surge triggered by Russia’s invasion of Ukraine.
But investors have questioned how that aligns with the group’s climate strategy, which includes plans to cut Glencore’s direct and indirect emissions by 50 per cent by 2035 as well as hit net zero by 2050.
Others backing the resolution include Australian superannuation fund Vision Super and the Ethos Foundation, which represents major Swiss pension funds.
Investors backing the climate resolution manage around £1.8trillion in assets.
Last year, over a quarter voted against its climate action plans, with many citing slow progress in running down coal production.
Glencore promised to publish more details on its strategy in a report due in March.