Two months before its AGM, mining giant Glencore has today announced a series of new climate commitments following forceful investor engagement, supported by ShareAction. The commitments include:
- Issuing a new position on the Paris Agreement; Glencore will now support the Paris Agreement, as opposed to simply acknowledging
- Committing to prioritise capital expenditure on minerals used in low-carbon technologies, and limiting its coal production capacity;
- Disclosing publicly how the company ensures that material capital expenditure and investments are aligned with the Paris goals;
- Publishing a review of its trade associations by the end of 2019;
- Setting new Scope 1 and 2 carbon emissions targets;
- Adapting its executive remuneration policies in light ofthese new commitments.
Today’s announcements by Glencore and by the Church Commissioners follow robust investor engagement led by the Church Commissioners, with support from ShareAction, the responsible investment NGO, on shareholder engagement.
In response, Jeanne Martin, senior campaigns officer at ShareAction, says: “Investors have made it clear that they expect Glencore to align its business model with the Paris goals, and stop engaging in indirect and direct lobbying activities that undermine action to address climate change. This forceful engagement has started to bear fruit.
“Today’s announcement is a good step forward for Glencore – the black sheep of the energy world – which for far too long refused to come out in support of the Paris Agreement. However, it’s actions not words that matter. Glencore’s South East Asian coal frenzy will be a true test of the company’s commitment to the Paris goals. The IPCC has made it clear that coal has no role to play in a low-carbon future, a finding seemingly at odds with Glencore’s recent coal acquisitions and own production forecasts for thermal coal. ShareAction will watch closely to make sure Glencore stays faithful to today’s commitments.”
Notes to editors:
- For more information or to arrange interviews, please contact Beau O’Sullivan at firstname.lastname@example.org or on +447950299491
- The IPCC recently assessed mitigation pathways limiting warming to 1.5C above pre-industrial levels. In all of these scenarios, the power sector is “virtually full[y] decarbonised…around mid-century”. This means that by 2050, coal use in the power sector falls to “close to 0%” and renewables supply 70-85% of the electricity mix. Investments in coal power plants without CCS is “halted” by 2030 in “most” 1.5C pathways. This seems to be strongly at odds with Glencore’s central scenario, ‘Delayed Action’, Glencore’s recent coal acquisitions, and the company’s own production figures for seaborne thermal coal.