A cluster of Glencore investors advocate for the company to retain its coal mining operations instead of separating them after the acquisition of Teck, emphasizing financial benefits and environmental stewardship. Despite activist calls for spin-off, investors highlight coal’s profitability for the next decade and its role in the transition to renewable energy.
Glencore’s impending acquisition of Teck is poised to significantly expand its coal business, yet plans to list these assets separately. While some companies have divested from coal due to climate concerns, critics argue that this often leads to prolonged coal usage with diminished oversight. Initially aligned with this trend, Glencore now plans to consult shareholders post-acquisition.
However, key investors express opposition, advocating for a phased approach to coal phase-out to ensure a just transition. Not-for-profit groups stress corporate responsibility for emissions, especially given Glencore’s rising carbon footprint. While Glencore’s climate efforts receive mixed reviews, its ESG performance is commendable according to LSEG data. Besides environmental concerns, investors highlight coal’s continued profitability, anticipating future demand surges. Despite recent price fluctuations, coal assets remain lucrative for Glencore’s diversified portfolio.
