Glencore Responds to Shareholder Climate Concerns
Swiss multinational commodity trading and mining company Glencore has acknowledged the concerns raised by its shareholders regarding its climate policies. In May, the company faced significant opposition when nearly a third of the votes cast opposed its 2022 climate report. Additionally, a climate transition plan proposed by shareholders, which the management had originally opposed, received nearly one-third of the votes.
Following this dissent, which exceeded 20% and prompted a response in line with the UK's good governance code, Glencore engaged in discussions with its shareholders. These talks revealed key issues, particularly relating to the alignment of Glencore's objectives and commitments with the International Energy Agency (IEA) scenarios. Shareholders also expressed concerns about the timing of emissions reduction from Glencore's industrial activities between 2026 and 2035. Additionally, there were questions about the compatibility of Glencore’s recent acquisition of a significant stake in Canadian company Teck's steelmaking coal operations with its climate strategy.
In response, Glencore has pledged to maintain its commitment to reducing industrial emissions and to reassess the resilience of its operations. The company also plans to extend its review of targets against various climate scenarios.
Glencore has announced that it will release a tailored climate transition plan by March 2024. This plan is expected to detail the company's strategy to align with global climate goals and address shareholder concerns. The company's response signifies a growing recognition of the importance of environmental sustainability in corporate governance and investor relations.
