Photo by: Creamer Media
Legal & General Investment Management (LGIM) said it will divest from Glencore Plc, the world’s biggest coal shipper, on concerns about its production of the most polluting fuel.
While most of its rivals have either ditched — or plan to exit — thermal coal, Glencore has instead said it plans to run its mines to closure by 2050. The commodities giant says the world still needs the dirtiest fossil fuel and that it’s the best owner of the mines.
Still, some investors such as LGIM have demanded more details about the pace of that run down. They have also asked for more details on how Glencore’s projected thermal coal production aligns with the Paris Agreement and efforts to limit the increase in global temperatures to 1.5 °C.
“LGIM remains concerned that Glencore has not disclosed plans for thermal coal production that are aligned with a net-zero pathway,” the investor said Wednesday.
Support from investors for Glencore’s climate plan rose to 90% this year, from about 70% a year earlier. Last year almost 30% of shareholders backed a resolution urging the company to explain how its thermal coal business aligns with the goals of the Paris climate deal.