AGL Energy is an electricity, gas and essential service retailer operating Australia’s largest electricity generation portfolio.
AGL Energy (AGL) operates Australia’s largest electricity generation portfolio, comprising approximately 20% of the total generation capacity in the Australian electricity market. It is a major participant in the gas and electricity wholesale markets, and consequently, remains Australia's largest producer of greenhouse gas emissions. AGL’s operational emissions in FY21 were 40.8 million tonnes CO2-e, or approximately 8% of Australia's total emissions.
ACCR has engaged with AGL Energy for many years on its management of climate risk, decarbonisation strategy and governance of industry associations. In 2021, ACCR filed a shareholder resolution with AGL for the Board to disclose short-, medium-, and long-term decarbonisation targets for Scope 1, 2 and 3 emissions that align with the Paris Agreement. Additionally, ACCR requested that AGL demonstrate that the proposed demerged companies’ capital expenditure aligns with the targets, and demonstrate how the proposed demerged companies' remuneration policies will incentivise progress against the targets. This resolution was supported by 52.56% of shareholders.
In March 2021, AGL announced that it would demerge into two entities: Accel Energy and AGL Australia. On 30 May 2022 the demerger was abandoned by the board due to the probability it would not be supported by shareholders.
ACCR is commenting on the results of the AGL Energy (ASX: AGL) 2022 Annual General Meeting, where the four directors nominated by Grok Ventures received majority support and will join the company board.
“This is a problem largely of the companies’ own making, having acquired the coal-fired power stations from state governments in the last decade, knowing full well the risks embedded in emissions intensive assets”.