Legal & General Investment Management (LGIM) has decided to divest shares in Glencore from its ESG funds due to concerns about the mining company’s lack of a clear path to achieving net zero emissions, particularly in relation to its continued production of thermal coal. This decision was made as part of an expanded climate engagement effort by Legal & General (L&G), with LGIM taking action after extensive engagement with Glencore dating back to the first Climate Impact Pledge launched in 2016.
Following a shareholder resolution filed at Glencore last year by LGIM, which called for transparency on how the company’s thermal coal production aligns with the Paris Agreement goals, Legal & General remains worried about Glencore’s lack of disclosure regarding plans for thermal coal production in line with a net zero pathway.
LGIM currently holds a 0.44% stake in Glencore, valued at around $325 million. Despite Glencore’s aim to achieve net zero emissions by 2050, contingent upon supportive policies, the company has faced criticism for its involvement in coal output and trade, including coking coal assets. In response to mounting pressure to divest from coal, Norway’s sovereign wealth fund excluded Glencore from its portfolio in 2020 due to its coal-related activities.
However, some investors believe that merely divesting from coal companies is not enough to address climate change effectively. Michael Wyrsch, Chief Investment Officer at Vision Super Pty in Australia, expressed concerns that holding a net zero portfolio does not contribute to global efforts to combat climate change, which Wyrsch described as heading in a negative direction. In an interview with Bloomberg, Wyrsch acknowledged the importance of broader systemic changes to achieve a sustainable future.
Amazon founder Jeff Bezos has announced plans to sell 25 million shares in the tech…
Jefferson County Public Health has reported the first case of tularemia in a Wheat Ridge…
SmartETFs Advertising & Marketing Technology ETF (NYSEARCA:MRAD – Get Free Report) saw its share price…
Meiwu Technology Company Limited (NYSE: WNW) saw its share price decrease by 0.6% in trading…
School may be out, but MODS' Camp STEAMology: Culture Shock is here to keep kids…
Deerfield Healthcare Technology Acquisitions Corp. (OTCMKTS:DFHTU) saw a 2.2% drop in its share price on…