Glencore leans away from coal
Glencore is capping coal production due to shareholder pressure.
The major coal miner has been facing pressure to help reduce global emissions of greenhouse gases, driven by a group of investors known as the Climate Action 100+ initiative.
“As one of the world's largest diversified mining companies, we have a key role in enabling transition to a low-carbon economy,” Glencore said on Wednesday.
Glencore says its future investments will be focused on boosting commodities “essential to the energy and mobility transition and to limit our coal production capacity broadly to current levels”.
The company says it will pull out 145 million metric tonnes of coal this year.
But “the increasing risks posed by climate change” is leading the company to rethink its targets.
In fact, Glencore explicitly referenced the 2015 Paris climate accord and sub-2℃ warming target in its statements this week.
But it also cited UN statements on the importance of affordable fuel for the developing world.
Glencore is also reassessing its membership of trade associations that may not align with the Paris climate agreement and goals, including the Minerals Council of Australia.
Glencore is the Minerals Council’s largest coal-producing member.