ACCR Company Engagement AGL Energy Ltd
AGL Energy (AGL) operates Australia’s largest electricity generation portfolio, which accounts for approximately 20% of the total generation capacity in the Australian electricity market. It is a major participant in the gas and electricity wholesale markets, and consequently, remains Australia's largest producer of greenhouse gas emissions. AGL’s operational emissions in FY20 were 42.4 million tonnes CO2-e, or approximately 8% of Australia's total emissions. In March 2021, AGL announced that it would demerge into two entities: Accel Energy and AGL Australia.
ACCR has engaged with AGL Energy for many years on its management of climate risk, decarbonisation strategy and governance of industry associations. In 2021, ACCR filed a shareholder resolution with AGL for the Board to disclose short-, medium-, and long-term decarbonisation targets for Scope 1, 2 and 3 emissions that align with the Paris Agreement. Additionally, ACCR requested that AGL demonstrate that the proposed demerged companies’ capital expenditure aligns with the targets, and demonstrate how the proposed demerged companies' remuneration policies will incentivise progress against the targets. This resolution was supported by 52.56% of shareholders.
