AllianzGI to urge Glencore to disclose how their thermal coal production aligns with Paris Agreement objectives

15.05.2023  |  Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, has announced today that it will support a shareholder resolution at the Glencore Annual General Meeting urging the company to disclose how their thermal coal production aligns with Paris Agreement objectives, as well as how they aim to align associated capital expenditure.

Matt Christensen, Global Head of Sustainable and Impact Investing at AllianzGI commented:

“Ahead of the upcoming annual general meeting of the shareholders of Glencore plc, on 26 May 2023, we intend to cast our proxy vote in support of the motion requesting the Company to disclose how their thermal coal production aligns with Paris Agreement objectives, as well as how they aim to align associated capital expenditure (Item 19). It was due to this lack of transparency that AllianzGI could not support the management proposed climate plan (Item 13). 

AllianzGI believes that given the material contributions of the thermal coal portfolio to the wider business, it is imperative to understand the degree to which Glencore is exposed to transition risk.

We note the progress Glencore made in recent years in areas such as managing methane emissions, better transparency and their approach to a Just Transition. We recognise the inclusion of Scope 3 within emissions reduction targets but would also expect further detail on how plans for thermal coal production and capital expenditures are Paris-aligned. This is key as it would provide us valuable information to enhance our understanding of the company’s long-term value creation paradigm. 

Finally, in parallel to Glencore’s consideration of “twin objectives” we are also acutely aware of the environmental impacts of their operations, and more specifically of their coal portfolio. The mining of thermal coal poses a risk of high impact on biodiversity. Coal mines may be located near high biodiversity areas and thus could disturb the degree to which ecosystems remain intact. Moreover, the mining process and especially open-pit approaches, as well as combustion of coal could release pollutants into air and water which further impact the health of surrounding ecosystems. Overall, in addition to managing the transition risk of their assets, we expect Glencore to continue being responsible stewards, mitigating their negative environmental externalities.”

Earlier this year, AllianzGI  published its annual analysis of how it voted at AGMs in 2022 around the globe, based on its participation in 10,205 shareholder meetings and voting in more than 100,000 shareholder and management proposals. AllianzGI voted against, withheld or abstained from at least one agenda item at 69% (2021: 68%) of all meetings globally. We generally support shareholder resolutions that ask companies, for example, to report on their climate change strategy in alignment with the Paris Agreement or seek information on climate-related financial, physical or regulatory risks and how the company manages such risks. Globally, we supported 80% of all climate-related shareholder resolutions.  AllianzGI specifically targets high emitting companies lacking credible net zero targets. AllianzGI continues to utilise its proxy voting power to influence companies. This remains one of the most powerful tools available to asset managers to effect change. This form of influence will help to shape a more sustainable future for companies and society.


Notes for the editorial offices:

For more information on AllianzGI’s approach to active stewardship, please visit:

For further information please contact

Sophie Niven
Tel. +44 7500 785667

Marion Leblanc-Wohrer
Tel. +33 68515 7454

About Allianz Global Investors:  

Allianz Global Investors is a leading global active asset manager. Our range includes equity, fixed income, private market and multi-asset strategies. Our expertise ranges from developed to emerging markets, from single country to global strategies, from thematic to sector portfolios. Through active asset management, we want our clients to feel well taken care of - everywhere and regardless of their investment needs.

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