Glencore Reverses Coal Unit Spin-Off Decision

Glencore has reversed its decision to spin off its coal unit, following strong opposition from over 95% of shareholders who favor retaining the profitable division. The decision highlights the challenge of balancing environmental concerns with financial performance, as investors prioritize returns from fossil fuel assets. Despite initial plans to divest for environmental reasons, Glencore's coal unit remains a key part of its strategy, benefiting from the energy crisis and elevated coal prices. This move aligns with ESG policies of major shareholders like BlackRock, who can maintain their investment without direct ownership of a pure-play coal company. Glencore continues to anticipate that tight supplies and sustained demand for coal will support profitability in the sector. The company also remains focused on leveraging cash flows to fund growth in transition metals and to optimize returns to shareholders.