The world’s greatest coal dealer is underneath strain to point out how its operations and “reckless” Australian plans align with the Paris Agreement on local weather change.
A shareholder advocacy organisation on Wednesday launched analysis displaying Glencore’s forecast emissions from coal manufacturing are at odds with its public pledges to assist restrict world warming to 1.5C.
The firm is Australia’s largest coal producer, with 17 mining operations throughout NSW and Queensland.
“Glencore’s ability to reach its own target of a 50 per cent reduction in emissions by 2035 is achieved with the assistance of beneficial carbon accounting, making its emissions reductions appear more significant,” the Australasian Centre for Corporate Responsibility analysis report mentioned.
The report additionally solid recent doubt on Glencore’s future improvement of the Wandoan coal mine in southwest Queensland.
Glencore’s open-cut Wandoan coal mine has been on maintain since 2013, however its Surat hydrogen mission close to Wandoan is inspecting utilizing coal to supply liquid hydrogen and ammonia as low-emission different fuels.
Glencore has additionally been a long-term supporter of contentious carbon seize and storage expertise (CCS) for storing industrial emissions deep underground.
“If Wandoan goes ahead, it’s likely to become a stranded asset,” mentioned Michael Wyrsch, chief funding officer and deputy CEO at Australian superannuation fund Vision Super.
“And the plans for offsetting it using carbon capture and storage are at best unproven and possibly reckless,” he mentioned.
He mentioned Glencore must chew the bullet on Wandoan and begin specializing in development that can profit shareholders, not coal tasks that can diminish shareholder worth and contribute to the planet changing into uninhabitable.
The researchers discovered whereas Glencore says it’s exploring the potential to cut back emissions related to Wandoan coal through the use of CCS, to completely sequester all its emissions would require extra CCS capability than within the pipeline for coal-related seize throughout the complete globe in 2030.
A shareholder decision filed by institutional buyers and ACCR calls on Glencore to clarify, and is because of be voted on in May.
“The research published today by ACCR provides additional context as to why we seek further disclosure from Glencore on their thermal coal production plans,” environmental, social and governance analyst Dror Elkayam mentioned.
“In particular, it outlines the potential misalignment between the company’s exposure to coal and the 1.5 degree trajectory, which we request more clarity on,” he mentioned.
Source: www.perthnow.com.au
