Glencore PLC on Wednesday released its 2024-2026 Climate Action Transition Plan, outlining its intention to achieve net zero by 2050.
The revised strategy came about after Glencore’s 2022 Climate Report received insufficient approval from shareholders at the company’s May annual general meeting.
The company’s 2024-2026 Climate Action Transition Plan outlines Glencore’s intention to reduce emissions 15% by the end of 2026.
By the end of 2035, Glencore said it wants this figure to reach 50%, with a view to achieving net zero by 2050.
The plan is in line with the company’s 2020 sustainability targets, but also includes an interim target of a 25% reduction in CO2-equivalent emissions for Glencore’s industrial assets by the end of 2030.
While Glencore added that meeting these targets would be subject to ‘a supportive policy environment’, the company said that it remains ‘on track’ to meet the sustainability goals, all of which are measured against a 2019 baseline.
As announced in November, Glencore has agreed to acquire a 77% interest in the Vancouver-based coal miner Elk Valley Resources Ltd from Teck Resources Ltd for $6.9 billion.
Glencore said that the acquisition of the steelmaking coal producer would provide it with access to an ‘important transition-enabling commodity’, which supports the construction of transportation as well as energy transition infrastructure such as wind farms.
The deal is expected to close by the third quarter of 2024.
Given that its climate transition plan was drawn up prior to the acquisition being confirmed, Glencore said that the strategy only incorporates the company’s current portfolio.
In its December announcement, however, Glencore said that a principal area of interest for shareholders regarding the company’s sustainability goals was ‘integration of the recently announced acquisition of 77% of Teck’s Elk Valley Resources steel making coal assets into the climate strategy.’
Shares in Glencore were down 0.6% at 416.25 pence each in London on Wednesday morning.
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