Our engagement
Iluka falls under our high-carbon company category; therefore we have been engaging with the company to encourage it to set a net zero commitment and interim emissions targets (one of our minimum requirements to avoid a vote against directors) since 2022.
During our discussions in 2022, the company said it understood our position and showed some intentions of setting emissions targets, but without a clear timeline. Additionally, at the time, management expressed its intention to pivot the business to move to critical minerals through their Rare Earths Enneaba project.
Given their explanation and positive plans, we decided not to vote against directors yet, and recommended an abstention instead.
However, on further engagement during 2023, the CEO and Chair confirmed that they would not be in a position to set targets in CY23 either, arguing that decarbonising parts of their business was technologically unfeasible at this stage, and therefore the targets would not be based on evidence. While
we appreciated this position, after much deliberation we decided to vote against a director of the board. This was to signal to the company the urgency and need to continue exploring and finding ways of decarbonising, as we believe it’s a risk to the business and investors.
