Glencore faces a recent marketing campaign by traders to elucidate how its coal mining operations align with efforts to chop carbon emissions and curb international warming.
Glencore is certainly one of Australia’s largest coal producers and has mines throughout NSW and Queensland, largely producing thermal coal that’s burnt in energy crops to supply electrical energy.
The first ever shareholder decision focusing on Glencore’s thermal coal manufacturing has been filed on behalf of a coalition of institutional traders.
Investors from Europe, the United Kingdom and Australia are demanding disclosure of how Glencore’s coal manufacturing and funding plans align with the Paris Agreement on local weather change and the International Energy Agency’s push for internet zero emissions.
Michael Wyrsch, chief funding officer and deputy CEO at Australia’s Vision Super, stated it was disappointing Glencore continued to put money into thermal coal, which was a shrinking business.
“Glencore has a tremendous opportunity to be part of and profit from the energy transition,” he stated.
“It is well placed with its exposure to many key commodities for the transition including copper and nickel.”
He stated Glencore’s rising recycling business must also see a tailwind from the power transition away from fossil fuels.
The Australasian Centre for Corporate Responsibility stated this was the primary time traders had filed a local weather decision particularly specializing in Glencore’s thermal coal manufacturing and was a major escalation of stress on the corporate.
The shareholder activist organisation, working with UK-based accountable funding group ShareAction, stated Glencore was already on discover after almost one quarter of shareholders rejected its local weather plan in 2022.
“The recent decision by Glencore to withdraw an application for the huge new Valeria greenfield coal mine in Australia shows that substantial reductions in coal output are possible,” ACCR spokeswoman Naomi Hogan stated.
“Glencore is capable of responding to investor concerns and to the global headwinds against new coal.”
She stated the decision supplies extra momentum for Glencore to align coal manufacturing with the Paris aim to restrict international temperature will increase to 1.5C.
The decision requires the Climate Action Transition Plan due in 2024 to totally clarify how Glencore is responding to the part out of coal-fired electrical energy technology in superior and growing economies.
Glencore put the $1.5 billion Valeria undertaking beneath evaluate final month, citing “increased global uncertainty”.
The metallurgical and thermal coal growth close to Emerald in central Queensland had been deliberate to start in 2024.
“We will continue to progress various brownfield coal extensions at existing mines in Australia,” Glencore stated on the time.
“But note that within the next four years our Liddell, Newlands and Integra mines will close and undergo appropriate rehabilitation.”
