Glencore shareholders deliver rebuke to board over coal plans

The Australasian Centre for Corporate Responsibility​ (ACCR) is commenting on the results of the Glencore annual general meeting (AGM), held yesterday in Zug, Switzerland.

23.7% of Glencore shareholders voted against the approval of Glencore’s 2021 climate progress report.

Under the UK Corporate Governance Code, Glencore will have to publish an update on its engagement with shareholders about its Climate Transition Action Plan within six months of the 2022 AGM.

Glencore Chair Kalidas Madhavpeddi was re-elected with 89.3% support, and the Chair of its Health, Safety, Environment and Communities Committee, Peter Coates, was re-elected with 96.2% support.

ACCR previously published analyses of Glencore’s progress against its climate plan, and its underreporting of methane emissions.

Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“Glencore shareholders have delivered a rebuke to the board over its supposed commitment to a ‘responsible managed decline’ of its coal portfolio.

“Nearly 24% of shareholders voted against Glencore’s progress on its climate plan—a significant decline after near unanimous support (94%) for Glencore’s climate plan in 2021.

“Many Glencore shareholders are clearly unhappy about its lack of disclosure of its plans for new and expanded coal mines in Australia, which are capable of producing more than 100 million tonnes annually.

“We look forward to Glencore updating its climate strategy in the six months ahead.
“Glencore’s total emissions will likely increase by 17% in 2022, with its forecast increase in coal production.

“Its coal expansion plans are in direct conflict with its commitment to a ‘responsible managed decline’ of its coal portfolio and its commitment to the Paris Agreement.

“To date, Glencore has not disclosed to shareholders how it measures and manages methane emissions from its coal mines, nor how it intends to reduce those emissions in order to meet its emission reduction targets.

“Unlike many of its peers, Glencore has failed to commit any material capital expenditure to reduce its operational and Scope 3 emissions.

“InfluenceMap found Glencore to be the 8th most obstructive company blocking climate policy action globally, and remains one of the few diversified miners still promoting thermal coal.

“Despite the significant dissatisfaction with Glencore’s progress on its climate plan, Peter Coates, the Chair of the Health, Safety, Environment and Communities Committee was disappointingly re-elected with more than 96% support. Though the near 11% opposition to Glencore Chair Kalidas Madhavpeddi is noteworthy.

“Investors must be prepared to hold directors accountable when climate progress is clearly insufficient.”

Background

ACCR’s analysis of Glencore’s progress against its climate plan is available here.

ACCR’s analysis of Glencore’s underreporting of methane emissions is available here.