Fresh thinking needed at AGL

The Australasian Centre for Corporate Responsibility​ (ACCR) has welcomed the resignation of the CEO of AGL Energy (ASX:AGL), Brett Redman.

Commenting on the announcement, Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“The resignation of AGL CEO Brett Redman, after only two and a half years in the job, is a clear sign that those who created the company’s problems, are incapable of solving them.

“In late 2018, Brett Redman claimed that the energy transition “was always going to take a long time”. Those remarks now look completely ill-informed.

“AGL is Australia’s largest emitter, responsible for approximately 8% of annual emissions. Its actions have a real impact on Australia’s emissions trajectory.

“AGL should be developing a transition plan that will close its coal-fired power stations consistent with a 1.5°C pathway. Any transition plan must consider the health of Hunter Valley and Latrobe Valley communities and the long-term future of its workers. That is the central problem that AGL’s leadership needs to solve. Any change to its corporate structure must advance that goal.

“Without a clear strategy to bring forward the closure of Bayswater and Loy Yang, the company and its investors remain at risk. Brett Redman knows this. AGL’s current chairman and now acting CEO Graeme Hunt knows this. Every investor who has seen AGL’s share price halve over the last year knows this.

“Spending years attempting a demerger will not absolve AGL of its responsibilities to its investors and the communities in which it operates.”