GLNCY Glencore Plc (PK)

By Maitane Sardon

Glencore PLC could face more pressure to dial up its climate strategy following a report alleging that the company is understating methane emissions from some of its coal mines.

The report by the Australasian Centre for Corporate Responsibility, a shareholder advocacy group, said that between 2018 and 2021, the commodities giant understated its operational emissions by 11% to 24% on an annual basis as it reported fewer methane emissions than some of its Australian coal mines had produced.

The analysis used methane estimates made using satellite data by scientists from the SRON Netherlands Institute for Space Research. Methane, a potent greenhouse gas that can leak from pipelines, has become a focus of climate-monitoring satellites as it is harder to detect than carbon dioxide.

The SRON scientists estimated that methane emissions from Glencore's Hail Creek mine in Queensland were at least 13 times greater than what it had disclosed in its 2019 emissions inventory, while those produced at its Oaky Creek coal mine were at least double, the ACCR said.

Based on the findings, the 2019 baseline Glencore relies on to determine its climate goals and measure changes in the amount of emissions released into the atmosphere is inaccurate, the ACCR said.

A Glencore spokesman denied the claims and questioned the reliability of using satellite technology for climate monitoring.

"There are concerns and questions in relation to the use of satellite technology to measure methane emissions reliably and accurately from mining," he said.

He added that the paper published by the SRON scientists included inaccurate information on Glencore's coal production and operations, making it hard to rely on to estimate its operational emissions.

The ACCR said investors should ask Glencore to explain its methods to measure its methane emissions and draft a plan to strengthen its sustainability reporting.

According to research by Boston Consulting Group, only 10% of companies quantify their greenhouse-gas emissions, and 66% don't report on emissions linked to the use of their products by customers. Methane emissions from oil, gas and coal are 70% greater than what governments disclose in official data, the International Energy Agency's methane tracker shows.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

April 20, 2022 09:40 ET (13:40 GMT)

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