Engagements in focus

BP

BP is a long-term holding for Ruffer, and we have long engaged with the company, addressing both the company’s role in the energy transition and other social and governance issues. BP has a stated goal of transitioning from an integrated oil company to an integrated energy company, which means it will be vertically and horizontally integrated across the energy value chain. It aims to deliver both fossil fuel and renewable energy to wholesale and retail clients. The question we – and others – have is whether this endeavour will create or destroy value for shareholders.

EXXONMOBIL

ExxonMobil is an integrated oil company (or oil major). Ruffer holds a position in Exxon for two reasons: on a macroeconomic basis, we wanted exposure to oil, given its links to GDP growth; and, on the fundamentals, we have conviction in the Exxon management team and its strategies.

GLENCORE

As a multinational metals and mining company, Glencore is no stranger to questions about its operations in developing regions. In late 2023, various non-governmental organisations (NGOs) published three reports on Glencore’s mining activities in Peru and Colombia. They contained allegations ranging from soil and water pollution to land dispossession, involuntary displacement and resettlement. Although the human rights, labour and environmental concerns in these regions are well known, the publication of these reports and the breadth of the topics raised prompted us to contact the company to discuss them. We also took the opportunity to follow up on aspects of our last meeting on Glencore’s corporate strategy.