China’s top coal firms lean into power as mining profits slip
Mining costs are rising because of aging deposits that demand deeper bores and increased maintenance to avoid accidents.
Glencore Plc shareholders have been urged to vote down the commodity trader’s climate progress report at an investor meeting later this month by an influential proxy advisory firm.
Glass Lewis & Co. said that the lack of board oversight for the company’s climate program and insufficient clarity on how Glencore may interpret support for its strategy-setting process meant investors should vote against the motion, the shareholder adviser said in a report seen by Bloomberg News.
As investors become ever more focused on climate, Glencore has laid a different strategy to many of its rivals. While its major peers have looked to quit mining thermal coal, the most polluting fuel, Glencore has instead sought to position itself as a responsible custodian to run its mines to closure by 2050, becoming carbon neutral in the process.
Glencore’s position received overwhelming shareholder support at last year’s investor meeting, with 94% voting in favor.
In a letter responding to Glass Lewis, seen by Bloomberg News, Glencore said it was at the forefront of climate shareholder engagement and reporting in the mining sector and asked the advisory firm to revisit its assessment.
“The board maintains the ultimate oversight of the strategy, as clearly expressed in our AGM Notice,” the company said in the letter. “Our reporting reflects the central importance of climate to our board. The directors receive reports, discuss and make decisions on climate matters at each set of our board and committee meetings.”
Glass Lewis didn’t respond to a call seeking comment.
Still, Glass Lewis said it was unclear how much board oversight there was for Glencore’s climate reporting.
“We believe that effective governance and board-level oversight of climate are arguably the most critical aspects of a company’s management of climate-related issues,” Glass Lewis said. “Given that there is no disclosure to this effect, we do not believe that support for this resolution is warranted.”
Glass Lewis follows the Australasian Centre for Corporate Responsibility in saying Glencore’s climate progress report should be voted down.
Last month the ACCR said it opposed the resolution for reasons including continued coal expansion in Australia and Glencore’s coal emission targets not being consistent with the reduction needed to avert the worst impact of climate change.
(By Thomas Biesheuvel)
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