Media release

Incitec Pivot shareholders revolt on climate

The Australasian Centre for Corporate Responsibility​ (ACCR) is commenting on the 43.71% support for its shareholder resolution at ASX-listed explosives and fertiliser manufacturer Incitec Pivot Ltd (ASX:IPL), which requested the company to set emissions reduction targets aligned with the Paris Agreement. IPL’s AGM was held in Melbourne today.

The resolution and supporting statement are available here.

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

“This level of support suggests that institutional investors are demanding more climate ambition from ASX-listed companies, particularly over the short to medium term.

“Incitec Pivot’s emissions reduction targets are not aligned with the Paris Agreement’s goal of limiting global warming to 1.5°C above pre-industrial temperatures.

“Incitec Pivot’s operational emissions have increased by 26% since 2015.

“Its short and medium term emissions reduction targets of 5% by 2025 nd 25% by 2030 (on 2020 levels) are unambitious, and leaves the heavy lifting to the later part of the decade.

“Incitec Pivot is the largest industrial user of gas on the east coast of Australia (~35 petajoules p.a.), yet has not committed to alternative sources of feedstock, and is actively pursuing the 270 petajoule Range coal seam gas project in the Surat Basin.

“Incitec Pivot has not made any material investment in decarbonisation to date.

“It has not disclosed when it intends to upgrade its Moranbah and Louisiana plants, nor what capital expenditure these upgrades will require.

“Its recently announced partnerships to investigate the use of green hydrogen do not include any capital commitment or timeline to commerciality.

“As it stands, investors have no knowledge of how and when Incitec Pivot will actually reduce its emissions.

“Investors must turn their attention to the demand side for fossil fuels, just as much as the supply side, if we are to have any chance of limiting global warming to well below 2°C.”


ACCR’s briefing on the shareholder resolution is available here.

IPL’s operational and value chain GHG emissions, 2015-21 (Mt CO2e)

Mt CO2e2015201620172018201920202021
Scope 12.352.452.754.043.473.663.11
Scope 20.360.310.340.330.310.300.30
Scopes 1+22.702.773.094.373.783.963.41
Scope 3N/A*N/A*N/A*7.726.296.006.28
Scopes 1+2+3---12.0810.079.969.69

*Previous Scope 3 emissions disclosures related to shipping only

IPL’s capital expenditure, 2015-21 (A$m)

Major growth capital256.4215.283.1----
Minor growth capital16.429.852.064.655.260.251.5
Lease buy-out---6.946.6--

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