Cognitive dissonance: Glencore’s coal expansion plans are not ‘responsible’

The Australasian Centre for Corporate Responsibility​ (ACCR) is calling on Glencore shareholders to oppose Glencore’s second ‘Say on Climate’ (vote on progress), and the re-election of Peter Coates.

ACCR’s analysis of Glencore’s progress against its climate plan is available here.

Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“Investors must vote against Glencore’s second ‘Say on climate’ vote to ensure they are not tacitly supporting new and expanded coal mines inconsistent with the Paris Agreement.

“Glencore is asking shareholders to trust that its coal production will decline, despite its plans for new and expanded coal mines in Australia capable of producing more than 100 million tonnes per annum.

“Glencore’s total emissions will likely increase by 17% in 2022, with its forecast increase in coal production.

“Glencore is expanding several coal mines in Australia, applying for new coal exploration areas and seeking approval for a major new greenfield coal mine—Valeria—which will destroy habitat for the iconic koala.

“Its coal expansion plans are at odds with its commitment to a ‘responsible managed decline’ of its coal portfolio and in clear conflict with its commitment to the Paris Agreement.

“Glencore is likely underreporting its fugitive methane emissions from ‘super emitting’ coal mines in Australia, and the Scope 3 emissions from its investments (including EN+ Group and Rosneft).

“Unlike many of its peers, Glencore has failed to commit any material capital expenditure to reduce its operational and Scope 3 emissions.

“Glencore is the 8th most obstructive company blocking climate policy action globally, and remains one of the few diversified miners still promoting thermal coal.

“Investors in Glencore do not have a clear picture of Glencore’s forward coal production plans in Australia, nor of how stated emission reduction targets can be realistically met.

“Opposing the re-election of Peter Coates is also warranted given Glencore’s coal growth plans, and his role as Chair of the Health, Safety, Environment and Communities Committee.”

Background

ACCR’s analysis of Glencore’s progress against its climate plan is available here.

Glencore’s coal expansion plans in Australia (Table 8)