Environment: Glencore under pressure from shareholders to reduce coal use

Unlike Total, castigated by NGOs, the Anglo-Swiss giant Glencore was, this Friday, May 26, under pressure from its own shareholders at the General Meeting. Some are demanding more transparency about the group's contribution to global warming.

Glencore, an Anglo-Swiss raw materials extraction company, is under pressure from its shareholders for its use of coal. AP - Urs Flueeler

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

The resolution received only 29.2% of votes in favour, which is nevertheless a significant result. These shareholders knew that it would be difficult to reach the 50% mark since the company's executives hold a significant share of the capital. But these shareholders are counting on a provision of British law, which assumed that this vote obtained 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.

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

Thermal coal

It is thermal coal that is particularly at the centre of the issues. Used to power power plants, this raw material is very often blamed, as is the climate strategy of the Anglo-Swiss group, one of the leaders in commodity trading and mining.

Unlike its competitors, Glencore clings to coal and wants to run its mines in its own way until they run out.

Shareholders insist that coal use must be reduced very quickly in order to limit climate change. They are backed by some major investors, including HSBC Asset Management, who are demanding discussions on management's proposed climate plan. Discussions that Glencore considers contrary to the interests of the company.

>> READ ALSO: Accused of corruption in DRC, Glencore will pay $ 180 million in compensation

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• Environment
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