The Climate Change Report provides transparent disclosure of our comprehensive approach to climate change, setting out how the Company is working actively to be part of the solution. The report sets out the Board’s plans to achieve a 30% reduction in Scope 1 and 2 emissions by 2030 and carbon neutrality across the Company’s operations for Scope 1 and 2 emissions by 2040, and its ambition to reduce its Scope 3 emissions by 50% by 2040. The report also details
the structures the Company has in place to ensure climate change is embedded across its decision-making processes and explains the Company’s progress to date in reducing emissions and increasing energy efficiency. The report has been reviewed by the chairman, the chief executive and the Board’s Sustainability Committee, and has been approved by the Board.
The Board’s Sustainability Committee is responsible for addressing climate change related topics and oversees, on behalf of the Board, material policies, processes and strategies designed to manage climate-related risks and opportunities. Matters relating to climate change are included in quarterly reports to the Committee, and as stand-alone items on the agenda where necessary. The chairman of the Board’s Sustainability Committee provides a summary of the Committee’s discussions at the Board, which addresses the most material issues raised by the Committee.
Following the 2019 Board and committee effectiveness review, the Board agreed that climate change issues and the Group’s carbon footprint would be a priority area of focus for the Board for 2020.
Building on this, and taking into account discussions held by the Board and the Board’s Sustainability Committee in 2020, the Board agreed to direct its climate change focus in 2021 to the workstreams that underpin the carbon neutrality targets and devote more time to circular economy trends and the consequences for the Group’s strategy.
The Board and the Board’s Sustainability Committee appreciate the significance to shareholders of the Company’s approach to climate and the importance in providing an environment that allows feedback and discussion on this approach. The Board and the Committee considered the views of some members of the Climate Action 100+ Group, who encouraged the Company to seek feedback through an advisory resolution, as well as the views of others who argue against such an
approach. They concluded that it was appropriate for shareholders to be given the opportunity to provide feedback. Whilst the vote is nonbinding and the Board retains ultimate responsibility for the strategy, the Company recognises that shareholder feedback is important as we develop and implement our response to climate change.
In addition to the Company’s broad programme of investor engagement, the Company has also put in place a structured process for specific engagement on climate-change-related issues, including through its biannual sustainability performance updates. In addition, the Company now has a structured engagement process with the Climate Action 100+ group of investors, co-ordinated through the Climate Action 100+ leads for Anglo American, Federated Hermes
and the Central Finance Board of the Methodist Church. This gives the 06 Anglo American plc Notice of Annual General Meeting 2022 Notice of Annual General Meeting Company the opportunity to have regular detailed discussions on key
topics related to climate change and the Company’s business. In the context of this structured engagement with Climate Action 100+, as well as in individual discussions with investors, the Company has discussed the proposal of this resolution with its shareholders. Whilst there were wide-ranging views on the specifics, shareholders were supportive of
the approach.
It is proposed that the Company will report on its progress in achieving the plans set out in the Climate Change Report on an annual basis and issue an updated version of the report at least every three years which would be put to a shareholder advisory vote. If the vote against the report ever exceeds 20% of the votes cast, the Company will engage with its shareholders to discuss areas that can be improved to ensure the satisfactory development of the report.
→ A copy of the Climate Change Report can be found at:
www.angloamerican.com/sustainability/environment/climate-change