Coal Company Responds to Investors, Vows to Cut Production to Battle Climate Change

One of the world’s largest mining and natural resource companies announced it will limit coal production to reduce carbon emissions in response to investors who pushed the company to commit to a transition to a low-carbon economy. 

One coal mining giant has bowed to investor pressure
 and agreed to stop expanding production in Australia
and other countries.

Glencore, a multinational mining company based in Switzerland, announced its plans after discussions with institutional investors participating in Climate Action 100+, a group with more than $32 trillion in assets under management. Investors praised Glencore’s commitment to the low-carbon transition and hailed it as a first for the mining industry. 

“We are encouraged to see that Glencore has taken the positive steps to align its business strategy with the goals laid out by the Paris Agreement to limit global temperature rise and to achieve net zero emissions,” said Mindy Lubber, vice chair of the global Climate Action 100+ steering committee and chief executive of Ceres, a nonprofit dedicated to sustainable investing. “As the first mining company to make such a commitment, we are hopeful that others in the sector and in other high-emitting sectors across the economy will follow suit.”

Glencore said it plans to “limit its coal production capacity broadly to current levels” while prioritizing commodities like copper, nickel, cobalt, vanadium and zinc that it says are “essential to the energy and mobility transition.” Last year, Glencore produced more than 129 million tons of coal. It operates 26 mines across Australia, Colombia and South Africa. 

Read the Climate Liability News story by Dana Drugmand - “Coal Company Responds to Investors, Vows to Cut Production to Battle Climate Change.”