AGL ignoring shareholders, still failing on climate
The Australasian Centre for Corporate Responsibility (ACCR) is commenting on AGL Energy’s changes to the closure dates of its coal-fired power stations, announced today.
Of the demerged entities:
AGL Australia will be net zero emissions across Scopes 1, 2 & 3 by 2040
Accel Energy will close its three coal-fired power stations by no later than 2045, including:
- Liddell by April 2023
- Bayswater by 2030-33
- Loy Yang A by 2040-45
Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:
“AGL proves its incompetence time and again by continuing to ignore the majority of its shareholders with its failure to align the closure of its coal-fired power stations with the Paris Agreement.
“Just five months ago, 53% of AGL shareholders supported a motion calling for Paris-aligned targets for both demerged entities. The AGL board has manifestly failed to heed that message.
“AGL has shifted the closure dates of Bayswater and Loy Yang A forward by just three years. This is next to meaningless for these crumbling assets: in 2033, Bayswater will be 48 years old, and in 2045, Loy Yang A will be 61 years old.
“AGL is facing increasing sustaining capital expenditure on its coal-fired power stations (up $17 million to $162 million), while it steadfastly refuses to invest in the transition, with growth and transformation capital expenditure declining (down $18 million to $62 million).
“By desperately clinging on to coal, AGL is ignoring the accelerating transition that is happening around it. The NSW South-West Renewable Energy Zone was recently swamped with 34GW of proposals - more than 10 times its likely capacity.
“Shareholders must be questioning the competence of the board and the executive to manage the transition effectively.
“The AGL board has failed to appoint new directors with the necessary industry experience and competence to manage the task ahead. With the demerger vote on the horizon, shareholders should expect these gaps to be addressed.
“If AGL fails to deliver Paris-aligned targets for both entities by the time of the demerger vote (expected late Q2 2022), then shareholders must seek change at the highest level: the board.
ACCR’s shareholder resolution to AGL Energy Ltd in 2021, calling for Paris-aligned targets, was supported by 53% of shareholders.
AGL Energy - Capital Expenditure, 2012-22
|Growth and transformation||690||454||262||426||139||217||295||388||178||173||62|
|Growth and transformation||90%||75%||51%||54%||26%||42%||38%||41%||26%||24%||22%|
*Source: AGL Annual Reports 2012-21, Half Years Results 2022
Half year only