Legal & General Investment Management said its ESG funds will divest from Glencore Plc, the world’s biggest coal shipper, on concerns about its production of the most polluting fuel.

While most of its rivals have either ditched — or plan to exit — thermal coal, Glencore has instead said it plans to run its mines to closure by 2050. The commodities giant says the world still needs the dirtiest fossil fuel and that it’s the best owner of the mines.

Still, some investors such as LGIM have demanded more details about the pace of that run down. They have also asked for more details on how Glencore’s projected thermal coal production aligns with the Paris Agreement and efforts to limit the increase in global temperatures to 1.5C.

“LGIM remains concerned that Glencore has not disclosed plans for thermal coal production that are aligned with a net zero pathway,” the investor said Wednesday.

Funds outside its ESG range will still hold Glencore shares, LGIM said.

Climate change is a pressing concern for many money managers: the physical impacts of global warming, such as extreme heat and rising sea levels, as well as the possibility of a rapid and chaotic transition away from fossil fuels, pose significant risks to asset values. That’s leading some investment firms to apply greater pressure on the companies they own to cut emissions and prepare for a low carbon future.

Still, there remains a fierce debate over whether divestment is an effective strategy. While investors can remove troublesome stocks from their portfolios and thus cut their financed emissions, the company may end up being held by new investors that are less interested in decarbonization.

Glencore currently plans to stop coal mining in 2050 and says it will become carbon neutral in the process.

Still, Glencore’s coal business has long been a source of controversy among climate activists and some investors. In 2020, Norway’s sovereign wealth fund said it had sold its Glencore stake due to the company’s exposure to thermal coal.

Glencore plans to consult with shareholders on the future of the coal business once it completes the acquisition of Teck Resources Ltd.’s steelmaking coal unit. Should a majority of investors show support to spin off the unit, Glencore will hold a vote on separating it.

Support from investors for Glencore’s climate plan rose to 90 per cent this year, from about 70 per cent a year earlier. Last year almost 30 per cent of shareholders backed a resolution urging the company to explain how its thermal coal business aligns with the goals of the Paris climate deal.