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Glencore progresses on climate, but further improvements needed on pay

28th April 2021

Ahead of Glencore’s AGM, Ashley Hamilton Claxton, Head of Responsible Investment at Royal London Asset Management said:

“We are still impressed and supportive of Glencore’s unprecedented decision to bring its climate plan and report to a shareholder vote, as it shows willingness to be open to feedback in the course of its journey towards net zero by 2050.

“Glencore’s boldness on long-term climate change ambitions is a significant step forward for the company. We have voted for the management resolution on climate change. However, we still think some further improvements are required on pay.

“We are pleased that the company made notable improvements to the pay policy and included environmental, social and governance (ESG) KPIs, but it is simply not transparent enough when it comes to the CFO’s pay arrangements. Additionally, the new CEO’s pay is high against his peers and discretionary measures in the restricted share plan (RSP) do not have a quantitative underpin. For this reason we abstained on the pay policy.”

“As with previous years, we voted against the annual pay report. Unless officially confirmed as an Executive on the board, we continue to lack certainty over Steven Kalmin (CFO) pay arrangements. Even though he attends board meetings, he is still not up for election at this year’s AGM, so our concerns persist.”

– ENDS –

RLAM holds 0.77% of Glencore, worth approximately £314.5m.