Activist hedge fund calls on Glencore to separate its thermal coal business

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Company’s continued focus on fossil fuel is a barrier to investment, Bluebell says in letter to management

Activist hedge fund Bluebell Capital Partners has asked Glencore Plc to separate its thermal coal business because it has become a barrier to investment. Picture: BLOOMBERG

Bivona declined to comment beyond the letter. Glencore engages regularly with its investors, the company said in a statement. “Due to its coal business, Glencore is not an investible company for investors who place sustainability at the heart of their investment process,” Bluebell’s partners wrote in the letter dated November 8. “A clear separation between carbonised and decarbonised assets is needed to increase shareholder value and remove the ‘coal discount’, whilst simultaneously ensuring that coal assets will be managed responsibly.

The company has said in recent years that it would be prepared to sell or spin off its coal business if enough shareholders demanded that it exit. However, its climate transition plan received a 94% approval vote from shareholders in April.

 

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