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Glencore under pressure from its shareholders to reduce its use of coal

Unlike Total, castigated by NGOs, the Anglo-Swiss giant Glencore was, this Friday, May 26, under pressure from its own shareholders during the General Assembly. Some demand more transparency on the group’s contribution to global warming.

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Shareholder organisations, Australian and UK, want to know how Glencore’s plans align with the goals of the Paris Climate Accord. Thus, during the General Assembly this Friday, they tabled a resolution to demand that the group provide detailed information on coal in its climate report in the future.

The resolution obtained only 29.2% of favorable votes, which is nevertheless a significant result. These shareholders knew that it would be difficult to reach the 50% mark insofar as the executives of the company hold a significant share of the capital. But these shareholders are counting on a provision of British law, which assumed that this vote obtains at least 20% of the votes, to force the group to engage in dialogue with them. Glencore is listed on the London Stock Exchange and therefore subject to UK law.

This result is a clear indication that institutional investors are increasingly aware of the risks associated with thermal coal. “said the ACCR organization in a statement, saying it is” impossible for Glencore to ignore this vote insofar as it went beyond 20%.

Thermal coal

It is thermal coal which is particularly at the center of the questions. Used to supply power plants, this raw material is very often singled out, as is the climate strategy of the Anglo-Swiss group, one of the leaders in raw materials trading and mining.

Unlike its competitors, Glencore clings to coal and wants to manage its mines in its own way until they reach exhaustion.

The shareholders insist on the fact that the use of coal must be reduced very quickly in order to limit climate change. They are backed by some big investors, including HSBC Asset Management, who are demanding talks on the climate plan proposed by management. Discussions that Glencore deems contrary to the interests of the company.

>> To read also: Accused of corruption in the DRC, Glencore will pay 180 million dollars in compensation

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