UK-based mining giant Anglo American took step forward in its governance of climate change on Monday, agreeing to a number of commitments that will better align its lobbying activity with the goals of the Paris Agreement.
The announcement follows months of extensive discussions with members of the Institutional Investors Group on Climate Change (IIGCC), which is backed by investors with over $4.7 trillion in assets under management.
Anglo joins 11 other global companies, including Glencore, that have already committed to positive lobbying practices on climate change
Among the commitments made by Anglo are a pledge to publish industry association memberships — including fees and its rationale for joining — before its annual meeting in May. The company will also set out a process to address any “misalignments” in policy positions.
Anglo’s commitments are also made in line with the European Investor Expectations On Corporate Lobbying On Climate Change program developed by the IIGCC. Investors will expect the company to act accordingly with each aspect of the expectations, including ensuring that its lobbying activity only supports, rather than frustrates, delivery of the Paris Agreement.
In a media brief released Monday, IIGCC CEO Stephanie Pfeifer stated that it is important for investors to see Anglo follow through with its commitments, and trade bodies it belongs to “must be called to account where they are opposing, impeding or evading the policy required to support decarbonisation and reduce global emissions.”
In a previous audit of lobby groups, Anglo identified policy differences with organizations such as the World Coal Association, the Minerals Council of Australia, the Hydrogen Council and the Northwest Territories Chamber of Mines.
“Anglo American has now joined the group of global companies expected to slam the door on trade associations which seek to undermine climate action,” Anders Schelde, chief investment officer of Danish pension fund, MP Pension, commented. “This demonstrates that shareholder action works and that those companies who fail to address inconsistencies in their support for the Paris Agreement will increasingly be challenged.”
Anglo now joins 11 other global companies, including Glencore, that have already committed to positive lobbying practices on climate change. The company is owner of various thermal coal mines in South Africa and Colombia, as well as coking coal assets in Australia.
Separately, Anglo has secured a licence required to raise the height of the tailings dam at Minas Gerais, its Brazilian iron ore mine, which would upgrade the operation to full capacity.