We abstained from re-electing Glencore Board Chair

Royal London Asset Management has abstained on the re-election of Glencore’s Board Chair. The decision reflects our concern over the effectiveness of the company’s biodiversity risk assessments and follows reports that the commodity trader’s mining activity is threatening public health in Colombia.     

The Glencore plc (Glencore) Annual General Meeting (AGM) was held on 28 May 2025.

Glencore, the Anglo-Swiss multinational headquartered in Baar, Switzerland, is one of the world's largest globally diversified natural resource companies [1], operating across the spectrum of commodity trading, mining, and energy production. The company owns and operates numerous mines and metallurgical facilities in Africa, Australia, South America, and Europe.

In recent years, Glencore has set sustainability goals, including emissions reduction [2] and responsible resource management [3]. Glencore also published an Environment Policy with a commitment to responsibly minimise and mitigate its impact on nature. We acknowledge this policy and the company’s commitment to nature and biodiversity. However, Glencore has faced scrutiny over the alignment of these commitments with its actual practices. The multinational acquired its open-pit coal mine Cerrejón, located in Colombia, from Anglo American and BHP in 2021. At the time of purchase, Glencore stated that the acquisition was consistent with its climate change strategy. Since then, local indigenous communities have reported that the mine is causing extensive environmental damage and have filed lawsuits in Colombian courts, citing cases of polluted rivers which have had serious health implications on the area’s inhabitants with animals also affected [4].

At Royal London Asset Management, we have historically engaged with Glencore on topics such as climate and remuneration. We abstained on the Company’s Climate Action Transition Plan at the 2024 AGM given the lack of alignment with Paris Agreement targets and Glencore’s potential role in unabated thermal coal beyond 2040 [5]. On remuneration, while we supported the report this year, previous years’ votes reflected concerns raised over the lack of downward discretion applied to bonus outcomes following the occupational fatalities that have been occurring on Glencore’s sites.

Our voting policy implementation has further evolved this year, resulting in a sharper focus on biodiversity risks and opportunities at relevant companies with a strong footprint in sensitive areas. The Taskforce on Nature-related Financial Disclosures (TNFD) guidelines for all sectors   stipulates that organisations must describe their processes for prioritising nature-related risks, including how materiality determinations are made within their organisations and how priority locations are identified [6].

Glencore is a significant figure in the global natural resource sector, shaping markets and economies through its operations. While its impact on global commodity trading and mining is undeniable, the company’s practices continue to be the subject of debate and reflect the challenge faced by large corporations to balance growth, environmental stewardship, and ethical governance. This year’s abstain vote is an acknowledgment of Glencore’s Environment Policy but an expression of concern around recent controversies. We hope this sparks the beginning of a fruitful discussion with the company, and it remains to be seen how our engagement will be reflected in future biodiversity-related votes.

This year’s abstain vote is an acknowledgment of Glencore’s Environment Policy but an expression of concern around recent controversies.

Our influence

At Royal London Asset Management, we exercise our voting rights globally and hold companies accountable for their decisions and actions. The voting process is a powerful tool for potentially influencing outcomes and making relevant decision-makers aware of shareholders’ sentiments on important topics. In that spirit, we are committed to addressing biodiversity-related concerns at companies with assets or activities in sensitive locations.

Our voting always aims to be pragmatic, reflective of local best practice and evolving market insights, and in the long-term interests of our clients. Alongside voting, our engagement, research, and advocacy also help to add value and meaning to our investment decisions. Voting and engagements may not always apply to any specific Royal London Asset Management fund or strategy, as each will have different investment objectives. Please check your prospectus for details on specific product objectives.

Voting results

[1] Source: Mining companies global market cap ranking 2025| Statista, March 2025

[2] Source: Glencore, 2024-2026 Climate Action Transition Plan

[3] Source: Glencore, Environment Policy, January 2025

[4] Source: TBIJ, Life beside Glencore’s mammoth coal mine

[5] Source: Glencore, 2024-2026 Climate Action Transition Plan

[6] Source: TNFD, Nature-related Risk and Opportunity Management and Disclosure Framework, March 2023

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