Large investors challenge Glencore’s coal development plans
Friday, January 6th, 2023
International investors with $2.2 trillion in assets will ask commodity giant Glencore Plc (GLEN.L) to show how its development of thermal coal mines meets the goals of the Paris climate accord to keep global warming to 1.5 degrees.
Glencore is one of the world’s largest producers and traders of the fossil fuel used in power generation and record prices of the commodity helped add some $10 billion to its earnings in the six months to June.
Major institutional investors including Europe’s Legal and General Investment Management (LGIM) said in a joint statement they have cofiled a shareholder resolution that asks Glencore to reveal how its production and capital expenditure plans align with the Paris goals and the International Energy Agency Net Zero Emissions pathway.
“Having both invested in and engaged with Glencore over many years, a higher degree of transparency is necessary in order to clarify how the company’s exposure to thermal coal is aligned with the 1.5C pathway and corresponds to its net zero commitment,” said Dror Elkayam, an analyst in investment stewardship at LGIM.
Other investors include the Swiss based Ethos Foundation, Australian pension fund Vision Super and HSBC Asset Management.
The resolution is to be presented for a vote at Glencore’s annual shareholder meeting in 2023.