June 26 (Reuters) - Legal & General's ( LGGNF )

investment management unit said on Wednesday that it is selling

its stake in global commodities trader Glencore ( GLCNF ) this

year on concerns over its production of thermal coal.

Legal & General Investment Management (LGIM) is also selling

its stake in New York-listed retailer TJX, it said,

raising the number of divestments under its Climate Impact

Pledge to 16, applying across funds covering around 176 billion

pounds ($223 billion) in assets under management.

"While divestment is one of the many stewardship tools we

use as a mechanism for driving change, we see it as a last

resort and by no means the last stage of engagement," Stephen

Beer, LGIM Senior Manager Sustainability and Responsible

Investment said.

LGIM said that its decision on Glencore ( GLCNF ) followed a

shareholder resolution last year, requesting the miner to

disclose how its thermal coal production aligns with the Paris

Agreement's objective to limit the global temperature increase

to 1.5 degrees Celsius.

UK-based LGIM has a 0.44% stake in Glencore ( GLCNF ), according to

LSEG data.

"We remain concerned that Glencore ( GLCNF ) does not meet our red

line asking mining companies to disclose whether they plan to

increase thermal coal capacity," LGIM said.

Glencore ( GLCNF ) declined to comment on the news, while TJX did not

immediately respond to a request for comment.

Environmental, social and governance (ESG) investing boomed

in 2020 and 2021 during the COVID-19 pandemic as low oil prices

spurred more investors to diversify beyond fossil fuels, and as

fund managers sought to be more climate-conscious.

Through its Climate Impact Pledge, LGIM assesses over 5,000

companies across 20 'climate-critical' sectors. It has also

highlighted concerns about climate risk management with Woodside

Energy ( WDS ) and Nippon Steel ( NISTF ) in the past.

Glencore ( GLCNF ) mines and trades thermal coal, which is a major

contributor to greenhouse gas emissions. The company also has

coking coal assets.

It plans to run down its thermal coal mines by the

mid-2040s, closing at least 12 by 2035.

($1 = 0.7907 pounds)

(Reporting by Echha Jain and Yadarisa Shabong in Bengaluru;

Editing by Savio D'Souza, Sonia Cheema and Emelia

Sithole-Matarise)