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A third of Glencore's shareholders failed to accept the company's climate progress report at today's meeting, demanding additional information. This, after Glencore announced in February a massive $7 billion in dividends, largely on the back of its thermal coal success.
The shareholders are looking for additional clarification on how Glencore will reach its emissions goals, and have backed a resolution that would have the company disclose more on how it's coming with cutting back on its thermal coal production.
The opposition to the company's reported climate progress surpassed the 20% threshold to be considered material dissent.
Glencore has plans to close all its thermal coal mines by 2040, with 12 due to close by 2035, but shareholders could be looking for mid-point targets.
The shareholder resolution was put forward by Legal & General Investment Management and the fund arm of HSBC—among others. Glencore opposed the motion earlier this month, saying it "undermined the board's responsibility for its climate strategy, given existing disclosures," Reuters said on Friday.
"We will continue to engage with shareholders so as to ensure their views are fully understood and to better understand the reasons behind these results," Glencore said.
In February, Glencore made a record payout to shareholders—disgruntled and not-so-disgruntled alike—to the tune of $7 billion after a bang-up period of bumper revenues and profits thanks to its coal and trading divisions. Glencore said it would pay out $5.1 billion in dividends, a top up payment of $500 million, and buyback $1.5 billion.
Glencore mines battery metals copper, nickel, and cobalt – key minerals for the future green transition and ramp up of electric cars. However, it has also has reaped the benefits from its decision to keep mining coal while rivals pulled out – as the dirtiest fuel surged to a record last year, according to the International Energy Agency.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.