Glencore To Reduce One-Third Of Its Carbon Footprint By 2035

The Swiss mining giant has stated that it will reduce its carbon footprint by at least 30 per cent by the year 2035 without setting any targets or deadlines. The company has been under pressure from investor groups to address carbon emission concerns like what several other energy resource companies have been facing in Europe. Glencore had promised last year that it will reduce its coal production, which was followed by the closure of its Colombian mines and reduced production in South Africa and Australia this year. Previously also the company had followed through its climate change promises when it had reduced its greenhouse gas emissions by ten per cent between 2016 and 2020, when it had promised to reduce it by five per cent.

There has been a major push given by the European Union in recent times to reduce the carbon footprint in the continent. The Union has allocated large amounts of funds to promote green initiatives aimed towards reducing carbon emissions and use more environment friendly methods and technologies. The Union has also come out with several regulations for businesses operating in the continent requiring contributing to its environmental protection and promotion initiatives. These regulations provide both incentives and impose punitive measures towards the furtherance of this cause and range from requiring automobile manufacturers to manufacture low emission vehicles to asking airline companies to reduce their carbon footprint, all directed towards ensuring that the European continent significantly lowers its carbon footprint in the next 20 to 25 years.

Technically carbon footprint is defined as all human activities that culminate in the release of carbon dioxide and other related gases into the environment. However, emissions of carbon dioxide and such other polluting gases become a critical environmental factor when it goes beyond the ability of nature to process it within its natural carbon cycle. Thus, from the environmental degradation point of view, we only consider those emissions which are non-naturally occurring and caused by human industrial activities.

The cause of the environment has become increasingly more accentuated in recent times, because of the meteoric rise in human industrial activity. The greenhouse gas emissions have become far greater than it was ever before in human history so much so that it has started to become unsustainable. Plant life, as well as animal life, is increasingly becoming threatened today by the larger concentration of poisonous gases in the atmosphere and the increasing ambient temperature of the earth. The current state of environmental emissions, thus, requires urgent and active human efforts so that these levels may be brought down to levels that can be comfortably processed by nature. However, reducing human activity to reduce environmental degradation and carbon footprint is not a sustainable option as well. The human race, if it has to advance, has to evolve into doing things in a better and more efficient way. On the energy usage and carbon footprint front, evolving further would translate into the replacement of old technologies with more energy-efficient processes and increased usage of renewable energy resources instead of over-dependence on non-renewable fossil fuel resources. Renewable energy resources and smart technologies not only help to reduce carbon emissions but reduce the balance of nature which we have been exploiting for so long for our gains. These resources and technologies thus will help up restore balance in nature whereby more room can be created to take forward the human evolution; further, several of these resources freely available in nature have been progressively increasing their share in the total energy pool of the world over the years.

In the recent past, some serious efforts are being put forth both on government levels , the corporate level as well as on the institutional level to bring about positive environmental changes and try to reverse as much of environmental degradation or damage as possible, which the world has already sustained over the past century. Government, as well as intergovernmental bodies, like the European Union, across the world are providing incentives and tax subsidies to enterprises that are working in this field. Governmental, non-governmental bodies have pledged large amounts of funds to support large scale efforts to implement such technologies. Several corporates have also come forward to financially and organisationally support budding renewable energy companies to grow and achieve sustainable levels of business activity so that the implementation of these technologies can be fast-tracked and several years of environmental degradation may be saved.

Glencore is not the only company in the recent past to have made such a pledge. Recently J Sainsbury PLC, the largest supermarket operator in the United Kingdom, announced a £1 billion pledge to make itself carbon neutral by 2040. BP's new CEO had also recently announced that the company would make an all-out effort to make itself carbon neutral by 2050. Glencore, while making the commitment, also announced that from 2020 it would be making regular disclosures of the contributions it is making towards the environmental cause and how the company plans to align itself with the goals set out in the Paris Agreement in 2015.

Glencore Plc Stock Trading Performance at The London Stock Exchange

Source- Thomson Reuters

The shares of the company were trading at GBX 229.30 on the LSE on 19 February 2020 at the time of writing this report. The market capitalisation of the stock based on the current price was around £ 30.126 billion.

In the past 52 weeks of trading on the exchange, the shares of the company have touched a price of GBX 343.90 on the higher side and a price of GBX 212.10 on the lower side

About Glencore Plc

Glencore Plc (LON: GLEN) is among the world's prominent diversified natural resource companies, which is involved in the business of production and distribution of minerals and metals, crude oil and oil products, coal and agricultural products. The company currently operates in more than 50 countries and has an employee base of 158,000, including contractors. The company is currently managing over 150 mines across the globe.

The shares of the company are listed on the premium main market segment of the London Stock Exchange where they are identified and traded with the ticker name GLEN, and the share are part of the FTSE 100 Index as well.