The ‘Aiming for A’ investor coalition, which secured successful shareholder resolutions at BP and Shell, has today confirmed that it is calling for the major mining companies, Anglo American, Glencore and Rio Tinto, to make a step change in their disclosure to investors about their response to the challenges posed to their businesses by the global drive to mitigate climate change.
The ‘Aiming for A’ coalition, which has £230bn assets under management and includes the Local Authority Pension Fund Forum, the largest members of the Church Investors Group, together with Hermes Investment Management, Sarasin & Partners, The Pensions Trust and Rathbone Greenbank Investments, are planning to submit shareholder resolutions later this month to help accelerate the mining companies’ participation in the transition to a low carbon economy. The resolutions are in the process of being co-filed by a much wider group of institutional investors representing over $4 trillion of assets. These include some of the UK’s largest pension schemes such as Railpen and the Universities Superannuation Scheme, and major asset managers including Aviva Investors, Amundi, BNP Paribas Investment Partners, Schroders, and APG Asset Management on behalf of its clients including ABP Pensionfund.
Helen Wildsmith, Stewardship Director at charity specialist CCLA and founder of ‘Aiming for A’, said: “These resolutions are a vital opportunity for shareholders to signal their support for the development of low carbon transition plans. We want Anglo American, Glencore and Rio Tinto fully to demonstrate awareness of the risks and opportunities that climate change poses to their businesses, including showing that their evolving asset portfolios are resilient across future scenarios. This has never been more crucial with unmistakable policy tightening and technological advance underway, and as more and more investors divest from companies with significant exposure to coal mining.”
The new wave of resolutions – described by the engagement partners as ‘supportive but stretching’ – directs the miners to address five main areas. These include reducing operational carbon emissions, maintaining a portfolio of assets resilient to future energy scenarios, and supporting low-carbon energy research and development. The resolutions are similar to those filed with BP and Shell which secured the support of their boards and 98% of shareholders, and now require both companies to disclose the impact of climate change on their businesses.
Edward Mason, the Head of Responsible Investment at the Church Commissioners for England, who are leading the engagement with Glencore, said: “The BP and Shell resolutions have helped change the way the European oil and gas companies integrate climate change into their business strategies. We are now keen to see the same from the major mining companies. We would like other investors to join us in co-filing then supporting these resolutions, thereby encouraging the companies to advocate for and adapt to a low carbon economy.”
The resolutions will be filed by 31st December. Shareholders will vote on the resolutions at the companies’ AGMs next spring.