These decisions highlight the influence of Glencore’s shareholders. Equity investors pressed the company to retain its coal assets as they have proven to be reliable cash generators. They also voted 90% in favor of the new climate plan, which is notably lacking in details on how the company will achieve its 2035 emissions target.
However, the developments also offer debt investors a lever by which to influence Glencore’s behaviour. Bondholders can seek firm decommissioning plans from Glencore for its retained coal assets. Their influence may also increase in the coming months as Glencore’s coal activity keeps it on divestment lists, and also excludes it from any sustainable funds under new EU fund naming rules.
However, investors should not lose sight of the fact that the company’s near-term coal strategy appears at odds with its long-term climate goals, and engage accordingly.
