Glencore under pressure over 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 to show how thermal coal mine development meets the goals of the 2015 Paris climate agreement , which aims to combat global warming. to 1.5C.

“A higher level of transparency is needed to clarify how the company’s exposure to thermal coal … matches its net zero obligation,” said Dror Elkayam, an analyst with Legal & General Investment Management.

Thermal coal is burned to produce electricity and is a major contributor to greenhouse gas emissions.

Glencore’s coal division raked in £7.5bn in the first half of last year following a price hike triggered by the Russian 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 percent by 2035 and reach net zero by 2050.

Others supporting the resolution include Australian pension fund Vision Super and the Ethos Foundation, which represents major Swiss pension funds.

Investors who support the climate resolution manage around £1.8 trillion in assets.

Last year, more than a quarter voted against the climate action plans, with many citing slow progress in cutting coal production.

Glencore promised to release more details about its strategy in a report in March.