Legal & General dumps Glencore over its coal manufacturing plans

Legal & General has doubled down on its woke agenda under new boss Antonio Simoes by ditching shares in Glencore over its coal production plans.

The insurance giant’s asset management arm said it was adding the mining and commodities trading giant to its ‘divestment list’.

Glencore fell foul of L&G’s annual assessment of climate ‘engagement’, which aims to ensure that companies it invests in ‘play their part’ in achieving global climate change goals.

Woke warrior: New L&G boss Antonio Simoes (pictured) appears keen to continue with the firm’s ethical agenda established under previous boss Sir Nigel Wilson

The decisions cover a chunk of Legal & General Investment Management (LGIM) funds – including those marked under the woke Environmental, Social and Governance (ESG) label –worth around £176billion overall. 

LGIM said the divestment followed years of ‘extensive engagement’ with Glencore, in which it owns a 0.44 per cent stake worth about £250million.

It added: ‘We remain concerned that Glencore does not meet our red line asking mining companies to disclose whether they plan to increase thermal coal capacity.’

Thermal coal – the type burned to make electricity – is particularly shunned by ESG investors since alternative sources of power, including gas, nuclear or wind are increasingly available.

Glencore, which already plans to run down its thermal coal mines by the mid-2040s, closing at least 12 by 2035, declined to comment on the divestment.

Earlier this month, chief executive Simoes, who took up the post in January, announced a shake-up of 188-year-old L&G that will see it sell ‘non-strategic’ investments – such as house builder Cala Homes – but retain its ‘purpose’ driven investing, including ownership of a heat pumps business.