Coal: Exit, voice or loyalty? The case of three mining multinationals
Coal plays a critical role as an energy pillar in many parts of the world. In three of the world’s most populous countries – China, India and Indonesia – coal supplies more than 60% of electricity needs. However, coal is also one of the most polluting and greenhouse gas emission-intensive substances, holding the dubious title of the single largest contributor to global warming. Mining is one of the industries under scrutiny for its role in the coal supply chain. Amid growing negative public sentiment and investor pressure, the mining majors are pursuing different strategies regarding coal. Rio Tinto completely exited in 2018. Anglo American spun out its coal assets into a separate company, effectively putting the decision in shareholders’ hands. Meanwhile, Glencore held on to coal, declaring “managed decline” the most responsible approach. The case’s dilemma – “who has it right” – offers fertile ground for debate. Participants should analyze the pros and cons of the company’s strategies from different angles and explore the repercussions on various stakeholders, on shareholders and on the environment. The potential learnings from this case and previews of the difficult trade-offs leaders face extend beyond mining to many industries in transition.
- Analyze the pros and cons of a company’s strategy from different angles (stakeholder, shareholder, environmental, competitive, etc) and the potential ramifications within and beyond the company itself.
- Understand the potentially difficult trade-offs leaders face during transitions.
- Explain the diversification discount and when companies might want to be diversified despite the associated “discount.”
- Recognize the role proactive stakeholder engagement plays in transitions.
Rio Tinto Group, Glencore, Anglo American, Materials, Metals and Mining
2013-2023
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
The case examines how DNB Bank, Norway's largest financial services company, reshaped its growth strategy by focusing on startups and SMEs, a segment traditionally considered unprofitable. In 2013, DNB launched a bold SME strategy, deliberately ch...
The case follows Kristin Hull, founder and CIO of Nia Impact Capital, a mission-driven investment firm in California, as she faces a pivotal decision in July 2025: Should she file a shareholder resolution against Tesla, Inc.? Hull and Nia have eng...
The case looks at the fundamental challenges, tensions and opportunities associated with an internally run venture as opposed to an externally funded startup or spin-off company. It discusses the genesis and context of Kontor, an internal venture...
In late 2023, when the management team at the consumer packaged goods company Reckitt considered adopting gen AI, potential use cases spanned the business—from drafting presentations to delivering customer support to optimizing procurement contrac...
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in Harvard Business Review November-December 2025
Research Information & Knowledge Hub for additional information on IMD publications