Investment Principles for Best-in-Class Coal Companies

Coal fuels 40 percent of global electricity and is expected to be an essential source of global electricity generation and steelmaking for many decades to come. The world needs coal to meet growing energy demand at a time when urban populations are projected to increase by 1.4 billion over the next 20 years and people embrace lifestyles powered by modern energy.
Today’s clean coal technologies are capable of reducing sulfur dioxide, nitrogen oxides, particulate matter, mercury and other emissions by 90 to 99.99 percent, enabling substantial improvement in air quality, even as coal use has greatly increased. High-efficiency, low-emissions plants with supercritical technologies reduce carbon dioxide emissions rate by as much as 25 percent. Longer-term investments in next-generation carbon capture, use and storage technologies are necessary to transition to the ultimate goal of near-zero emissions from coal-fueled power. 
With energy being vital to life, and future energy needs heavily reliant on coal, we submit that investors consider the following principles to assess whether their target investment companies meet the vast majority of the following standards consistent with best-in-class coal companies.
Sustainable Mining
  • Operate safe workplaces, commit to continuous improvement in incidence rates and establish safety as a top priority principle.

  • Maximize resource recovery.

  • Seek ongoing improvement in environmental performance.

  • Disclose which mines provide mountaintop-removal-free production.

  • Commit to restoring mined lands for generations that follow.

  • Respect human rights and indigenous people who are potentially impacted by mining activities.

Energy Access
  • Drive partnerships and policy to achieve universal access to modern electricity.

  • Engage with government, academia and other stakeholders to address major energy challenges.

Clean Coal Technologies
  • Support greater deployment of advanced coal technologies and next-generation carbon capture, use and storage technologies.

  • Support and drive policies to achieve the goal of near-zero emissions in the world’s next-generation coal-based electricity generation fleet.

Peabody is the leading global pure-play coal company, serving power and steel customers in more than 25 countries on six continents. The company offers significant scale, high-quality assets, and diversity in geography and products. Peabody is guided by seven core values: safety, customer focus, leadership, people, excellence, integrity and sustainability.