The Australasian Centre for Corporate Responsibility (ACCR) has filed shareholder resolutions with Santos Limited (ASX:STO) and Woodside Petroleum Ltd (ASX:WPL), calling on both companies to improve their disclosures on decommissioning liabilities, and to cease direct and indirect advocacy for oil and gas expansion
Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:
On the decommissioning resolutions:
“Decommissioning has been described as a “time bomb” for the Australian oil and gas industry by leading analysts. Investors must demand greater transparency on when infrastructure will reach end of life and the major assumptions driving estimated provisions.
“Peer reviewed research on decommissioning provisions in the North Sea found that actual spend was on average 76% higher than estimated.
“Woodside did itself and the industry no favours with the Northern Endeavor fiasco, triggering legislative, regulatory and social license risks for all offshore operators in Australia.
“The repurposing of end of life assets for offshore wind or CCS is not guaranteed to be feasible. Investors need to be updated on the outcome of feasibility studies in a timely manner due to the direct impact this has on decommissioning liabilities.”
On the climate-related lobbying resolutions:
“Despite years of concern from their shareholders, Santos, Woodside and their industry associations continue to advocate for a massive expansion in the oil and gas industry.
“Earlier this month in a pre-budget submission, the Australian Petroleum Production and Exploration Association (APPEA) called for sweeping tax cuts and subsidies to incentivise a further $350 billion investment in new oil and gas investment over the next 20 years.
“Such expansion is completely at odds with the conclusions of the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), if we are to limit global warming to 1.5°C. We simply cannot afford any new coal, gas or oil development.
“With escalating, climate-induced disasters across Australia and the world, investors must call for an end to industry advocacy for fossil fuel expansion.”
The resolutions and supporting statements for Santos can be found here.
The resolutions and supporting statements for Woodside can be found here.
In 2020, ACCR’s resolutions to Santos and Woodside received unprecedented support:
|Ordinary resolution on Paris goals and targets||Ordinary resolution on climate-related lobbying|
|Woodside Petroleum Ltd||50.16%||42.66%|
Both Santos and Woodside will also be providing shareholders with a ‘Say on climate’ at their upcoming AGMs in April and May 2022.