Source : THE AGE NEWS
Buyers have staged another rebellion against the panel of Australia’s biggest oil and gas company over what they say are poor emissions-reduction goals and a loss to prepare for a future beyond fossil fuels.
Perth-based Woodside Energy endured severe attention from climate campaigners and some of its own big shareholders at its annual general meeting on Thursday, as it narratives a massive growth of oil and gas production at a time of deepening concerns about the impacts of climate change.
Almost one-fifth of its shareholders voted to remove Ann Pickard, who chairs its eligibility committee, while a force of protesters interrupted deputy executive MegO’Neill’s opening address seven times by blowing violently on whistles. ” No more gas”, one protester yelled. ” Gas is poison”, shouted another.
The sizable shareholder protest vote against Pickard, one of three directors up for re-election at the meeting, was partly attributed to long-held concerns that Woodside’s strategic direction is out of step with international efforts to restrain rising temperatures.
” We believe the steps taken by Woodside so far fall short of what is needed to position it for the global transition to a low-carbon future”, said Jeff Brunton, the head of portfolio management at superannuation fund HESTA, which holds Woodside shares.
The$ 190 billion Aware Super also said its vote against Pickard reflected “dissatisfaction” with Woodside’s climate strategy.
A protester disrupts the meeting by blowing a whistle during the annual general meeting at Crown in PerthCredit: Trevor Collens
” Our decision is underpinned by our belief that climate change is one of the most significant financial risks to our portfolio over the long term”, a spokesperson said.
Woodside was dealt a globally unprecedented backlash last year when more than 50 per cent of its shareholders defied the board in a so-called” Say on Climate” vote over the credibility of its plans to continue operating in a carbon-constrained world.
Large investors across the globe are increasingly seeking to reduce their exposure to systemic risks posed by climate change and have been regularly casting votes against boards deemed to be not acting quickly enough.
Woodside investors at Thursday’s meeting had sent a” strong message”, said Will van de Pol of activist shareholder group Market Forces:” Reduce climate pollution or there will be consequences for the board”, he said.
Investor unease at Woodside has mostly centred on whether the company is setting itself adequately ambitious decarbonisation targets, relying too heavily on buying carbon offsets rather than cutting emissions, and providing adequate disclosures about the possible risks of its plans to pump additional gas from new gas fields.
There are also doubts about whether the company is doing enough to tackle its” Scope 3″ emissions – the greenhouse gases released when customers burn or process the gas it sells at power plants and factories.
Woodside chairman Richard Goyder said the company’s commitments balanced “ambition with discipline and achievability”.
Other energy giants, including European super-majors Shell and BP, have recently wound back some of their emissions and green targets.
” We only set targets where we have identified a pathway to meet them”, Goyder said. ” We will, of course, continue listening to our shareholders, who have diverse views, and take your feedback into account as we evolve our approach”.
Some international Woodside investors, including US pension funds, also cast their votes against one or more of the Woodside directors up for re-election at the meeting. Australia’s largest superannuation fund, AustralianSuper, meanwhile, said it had backed the re-appointment of all directors.
” We will continue to engage with the company on its decarbonisation strategy and plans to generate long-term value for shareholders”, a spokesperson said.
The company points to projections its biggest commodity, liquefied natural gas ( LNG ), will be needed more the coming decades for its use as a” transition” fuel that burns more cleanly than coal but can still be used to back up renewables during periods of low wind and sunlight.
Other forecasts, however, warn the role of LNG in the energy shift could be more limited, especially if countries across Asia follow through on ambitions to reduce the use of all fossil fuels in their power grids.
To drown out the whistling as protesters were escorted out of Thursday’s meeting ,O’Neil frequently paused to play promotional videos, including one that highlighted gas as a critical partner for renewables
” I wish folks would have watched that video, cause it really illustrates the point we are trying to make”, she said.
