AlwaysFree: Glencore AGM Climate Vote Shareholder Consultation Update

According to the company’s website news release on October 28, 2022, at the Company's AGM held on 28 April 2022, 76.28% of votes cast supported Resolution 13, to approve the Company’s 2021 Climate Progress Report (Climate Resolution). In accordance with Provision 4 of the UK Corporate Governance Code, as more than 20% of votes were cast against the Climate Resolution, Glencore has consulted with shareholders and is providing an update on the views received and actions taken.

Glencore engaged with shareholders prior to the AGM and continued such dialogue through extensive engagement with major investors after the vote. This process, including, but not limited to specific consultation in accordance with Provision 4 of the Code, has given Glencore valuable insights on the evolution of shareholders’ views and voting approach on the company’s strategy and progress, representing a wide cross-section of shareholders who voted in different ways on the company’s Climate Resolution.

Glencore is grateful to all those who have taken the time to engage on this important issue. Glencore have reflected carefully on the feedback received and will continue to engage with shareholders and other stakeholders, as well as monitor external market developments. Insights from this engagement have been and will continue to be factored into the company’s internal deliberations for consideration. 

Shareholders continue to reinforce that climate strategy will remain an important area of focus. There was broad support for the company’s climate strategy, recognising the importance of maintaining a strategy that remains resilient to the risks and opportunities of the evolving energy transition, and encouragement to continue the company’s focus on progressing towards the company’s ambition of achieving a net zero total emissions footprint by 2050.  A limited number of shareholders looked for opportunities to accelerate the company’s current total emissions reduction pathway (50% reduction by 2035), while some raised the prospects for incremental growth in the company’s coal production. However, the overwhelming majority of shareholders reiterated their support for the company’s current responsibly managed coal decline strategy and associated targets. 

In response to constructive recommendations received, Glencore will:

• publish the company’s Climate Progress Report on the same date as the company’s Annual Report in March 2023 (previously released in the December period), to ensure alignment and consistency across both reports
• enhance disclosures in the Climate Progress Report regarding the company’s planning and progress around the execution of the company’s climate strategy
• provide more detail on the company’s Board and management governance of climate matters, and
• engage further with key proxy voting advisors to seek an improved understanding of the company’s climate strategy in various areas.

Glencore looks forward to updating shareholders on the company’s progress against the company’s strategy and next steps at the company’s full year results presentation in February 2023. Further details on Glencore’s response to the outcome of the company’s Climate Resolution vote will be provided in the company’s 2022 Climate Report and 2022 Annual Report and Accounts to be published in March 2023.

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