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Glencore has become the last heavyweight in energy to succumb to the pressure of climate change and has announced its intention to stop increasing its coal production capacity, reported CNBC.
Switzerland's current thermal coal production capacity is 150 million tonnes a year, making it the largest exporter of this product. But as the energy and manufacturing industries are increasingly under pressure to reduce their harmful emissions and fight climate change, businesses are starting to transform.
Glencore, for example, plans to use the paid up capital through the cap on capacity to increase its production of base metals such as copper, cobalt, nickel, vanadium and zinc, all used in batteries for electric vehicles and other technologies allows the shift to a cleaner energy production.
The measure also aims to avoid shareholder concerns, as this stakeholder group is also becoming more and more concerned about the environment.
"For our shareholders to have a strong investment record, we need to invest in assets that can withstand the regulatory, physical and operational risks of climate change," Glencore said in a statement. play in the transition to a low-carbon economy, "he added.
The decision would not have been easy: last year, coal profits amounted to $ 5.2 billion, compared to $ 4.7 billion in copper, reported Bloomberg, citing the latest financial figures from Glencore. For the first time, coal profits were greater than copper profits, as demand for fossil fuels widely used for electricity generation in emerging markets continues to be strong.
However, there is a bright silver lining. "Limiting ourselves without additional growth will tighten our reserves. This should bode well for prices, "said general manager Ivan Glasenberg." This is one of the products in the world where there is no sharp increase in new supply. "
By Irina Slav for Oilprice.com
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