2024-08-25 22:27:19
Glencore, the world’s largest coal producer, has not given in to pressure from environmental activists and shareholders who are calling for the implementation of a more ambitious climate plan within the group. The raw materials trading giant has decided to take advantage of the wind that this energy sector holds.
Glencore will continue to operate its mines, but in anticipation, assures the business giant. The group’s coal division will not be separated from the rest of the operations as planned last year.
To follow in the footsteps of its competitors Rio Tinto and Anglo American, Glencore has decided to make what could be the biggest strategic change of the decade, according to Money Timesnamely, becoming a coal producer listed in New York on one hand and a metal-only building on the other.
“Creating value for shareholders”
Environmental activists and all stakeholders who asked Glencore to have a more ambitious climate plan in line with the goals set by the Paris Agreement ultimately did not succeed. And this is even if some investors, such as Norway’s Sovereign Fund, have removed Glencore from their portfolio.
Read againClimate: Earth has never been so carbon-rich
The CEO of Glencore indicated a change in sentiment among some investors towards fossil fuels. It ensures that continuing coal is the best way for ” create value » for shareholders. Maintaining its activity in the sector ensures the generation of income which can be invested in copper and other metals that are important for environmental change, explained the group.
New mines
Glencore speaks with knowledge: the coal sector is considered the most profitable sector. And it should bring a little more for the group in the coming years thanks to the completion at the end of July of the purchase of the coal assets of Canadian Teck Resources: including these new mines that have a value of more than 30 years go. According to the Australasian Center for Corporate Responsibility (ACCR) – which last year was part of a coalition of shareholders that lobbied for Glencore to say more about its coal strategy – Glencore is further anchoring the its presence in the complex.
Which does not prevent the business giant to maintain its goals Halve your company’s CO2 emissions by 2035.
Read againGetting out of coal: the example of Spain
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