Commodities giant Glencore says it will cap how much coal it mines amid shareholder pressure to reduce emissions of greenhouse gases.
The Switzerland-based company said Wednesday that after consulting with investors “we are furthering our commitment to the transition to a low-carbon economy.”
Burning coal for heat and electricity is a major source of carbon dioxide emissions, which contribute to man-made global warming.
Glencore said it will prioritize future investments to increase production of commodities “essential to the energy and mobility transition and to limit our coal production capacity broadly to current levels.”
The move is a sharp reversal for a company that has long championed the extraction and burning of fossil fuels, and which recently announced the purchase of further stakes in two Australian coal mines.