Glencore CEO criticizes Europe’s excessive focus on ESG.

Glencore CEO Criticizes European Investors for Prioritizing ESG over Financial Returns

During a mining event in London, Glencore CEO Gary Nagle expressed his concerns about European investors’ focus on environmental, social, and governance (ESG) factors, which he believes are overshadowing financial returns. Nagle defended Glencore’s decision to consider a spinoff of its coal business in New York instead of London, emphasizing the contrasting financial considerations and priorities between U.S. and European investors.

U.S. Investors: Pragmatic and Yield-Oriented

Nagle praised U.S. investors as being more pragmatic compared to their European counterparts. He highlighted the conversations he had with U.S. investors regarding the New York spinoff, which revealed their emphasis on financial returns and yield. In contrast, Nagle observed that European investors often prioritize ESG factors, sometimes placing returns lower on their list of priorities.

As oil and gas majors like Shell and BP face higher valuations in the United States, despite softening their climate commitments and investing in new production and exploration projects, Nagle believes American investors take a more practical approach to ESG, focusing on yield rather than solely on environmental concerns.

Potential Listing in New York

Although Glencore is not actively considering a move to New York, Nagle did not rule out the possibility of relocating the company’s listing in the future. He stated that if Glencore feels undervalued and unable to attract sufficient capital in London, a move to New York could be considered. However, he clarified that this is not currently under consideration.

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