It takes praiseworthy strategic thinking to say ‘so far and no further’ when it comes to a commodity that is an integral part of one’s business, but that is exactly what Glencore, the world’s biggest supplier of seaborne coal, did when it announced last week that it would not increase its coal production capacity beyond 150-million tonnes, its current top level.

In doing so, the large diversified mining and marketing company said it was furthering its commitment to a low-carbon transition.

It said that its commitment followed its engagement with the investor signatories of Climate Action 100+, an investor initiative to ensure that the world’s largest corporate greenhouse-gas emitters take the necessary action on climate change mitigation.

The company’s commitments include capital discipline consistent with the Paris Agreement, developing new reduction targets, reviewing progress regularly and aligning with the recommendations of the Task Force on Climate Financial Disclosures.

In a world where concern about global warming is escalating, these are all cooperative steps and indicative of good corporate citizenship in an investment era where environment, social and governance (ESG) considerations have taken centre stage.

The Paris Agreement is no small matter. It is an accord within the United Nations Framework Convention on Climate Change, dealing with greenhouse-gas-emissions mitigation, adaptation and finance, starting in the year 2020.

The Task Force on Climate-Related Financial Disclosures embodies voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders and insurers.

Glencore has committed to disclosing investment transparently and to publish data on its website, including the continued disclosure of emissions.

There is no doubt that coal-limiting activism from investor groups is increasing and will cause other major companies to follow Glencore’s full-disclosure lead.

Meanwhile, a country like South Africa and many developing countries as well will be needing coal for decades to come. But all should see the writing on the wall – coal’s once infinite horizon now has a finite hue.

Many banks are calling a halt on funding coal ventures as many look to the sun and the wind to generate the electricity that the world needs.

But there is no need to go overboard and spoil one’s case by exagge- rating, as some are doing in predicting coal’s imminent demise.

Sure, carbon tax and carbon emission allowances will take their toll, but these need to be incremental, as many countries are physically unable to change from coal-fired power generation to renewable energy at the pace that lobbyists are demanding without bringing economies down.

Realism needs to prevail as interest in ESG ratings picks up. The rise of ESG investing has created a need for data and research that can help investors understand the risks that companies face to avoid surprises.

This has resulted in mining companies paying increasing attention to their sustainability ratings.