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U.K. asset manager Legal & General Investment Management said Wednesday it will sell some of its Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) shares because of concerns about its production of thermal coal.
LGIM said its decision followed last year’s shareholder resolution at Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) that requested the miner to disclose how its thermal coal production aligns with the Paris Agreement’s objective of limiting the global temperature increase to 1.5 degrees Celsius.
Glencore (OTCPK:GLCNF) (OTCPK:GLNCY), the world’s biggest exporter of coal, plans to cut emissions in half by 2035 but has said it will only reach net zero by 2050 “subject to a supportive policy environment.”
“We remain concerned that Glencore does not meet our red line asking mining companies to disclose whether they plan to increase thermal coal capacity,” LGIM said.
LGIM owns a 1.33% stake in Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) stock, according to the Financial Times.