Engagements in focus
COTY
Over the last quarter, we met with Coty’s Independent and Non-Executive Director (NED) and Chair of the Remuneration and Nomination Committee, members of the Investor Relations and Legal teams and its Chief Corporate Affairs Officer ahead of the company’s annual general meeting (AGM). The discussion covered the NED’s background, expertise and industry perspectives. But the focus was on the board’s effectiveness and skills, partly given Institutional Shareholder Services’ (ISS) recommendation to withhold support for the re-election of several board members who act as nominee directors of the controlling shareholder. We also took the opportunity to explore the board’s approach to self-evaluation and director recruitment, as well as its approach to sustainability strategy.
ARCELORMITTAL
During the quarter, the CA100+ group continued its engagement with the company on climate and carbon emissions, meeting with both management and members of the board. The company issued the summary results of its externally prepared safety audit, accompanied by a presentation which we attended. Later in the quarter, we travelled to the company’s Sestao site (in northern Spain) which uses scrap metal in an electric arc furnace steel-making process.
GLENCORE
Glencore produces and markets metal, mineral, energy and agricultural commodities. At the start of 2024, we met with Glencore to discuss human rights, labour and environmental concerns at its Peruvian and Colombian operations. We also asked about the acquisition of Elk Valley Resources (EVR) in Canada and the possible implications for disclosures to be made in the 2024 Climate Transition Action Plan and, as the company has published marginal abatement cost curves, whether it would reveal its assumptions on the cost of capital or carbon pricing. At the 2024 AGM, Ruffer chose to support the approval of the 2024-2026 Climate Transition Action Plan as, on balance, we felt Glencore had presented shareholders with sufficient information about its carbon footprint and climate transition.