Media release

AGL on a collision course with Paris targets and investors

Sydney, 5 August 2020​: The Australasian Centre for Corporate Responsibility​ (ACCR) has filed a Shareholder Resolution to AGL Energy Ltd (ASX:AGL), requesting the company bring forward the closure dates of its Bayswater and Loy Yang A coal-fired power stations.

This resolution is based on AGL’s own FY2020 scenario analysis which shows that in order to limit global warming to 1.5°C above pre-industrial levels, AGL would have to close its three remaining coal-fired power stations by approximately 2036 - as opposed to the scheduled closure of Loy Yang in 2048, announced in 2015.

Commenting on the resolution, Dan Gocher, Director of Climate and Environment, said:

“Prudent capital allocation is a fiduciary responsibility of AGL to its investors. ‘Sustaining’ capital expenditure has grown from 25% of total capital expenditure in FY2013 to 72% (estimated) in FY2020. This allocation of capital expenditure suggests AGL is maintaining its coal-fired power stations at the expense of accelerating its transition.

“Investors must question whether this expenditure is in the long-term interests of shareholders.

“Despite issuing a Climate Statement at the end of June 2020, AGL continues to evade any substantive commitment to reduce emissions - and most importantly failing to bring forward the closure of coal-fired power stations, which investors have long been asking of AGL.

“AGL continues to affirm its commitment to Paris targets despite planning to operate its coal-fired power stations until the end of their technical lives.

“AGL’s emissions are not a matter to be taken lightly - they make up 8.1% of Australia’s total emissions.

“These coal stations are fossils in their own right - and as they age, their reliability declines and the cost of maintenance increases.



AGL Energy's Capital Expenditure, 2013-20

Capital expenditure AU$m20132014201520162017201820192020 (est)
Growth and transformation454262426139217295388234
Source: AGL Energy Annual and Half-Year Reports, 2013-20

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