Highlights of 2024

Here are some of the highlights of ACCR’s efforts and impact over this year. Without all of you, this work is not possible.

ACCR presents its Equinor research in Norway

Hosted by the Norwegian-based Climate Foundation, Lead Analyst Alex Hillman presented a seminar for business leaders and civil society, sharing our analysis on how Equinor, the country’s majority government-owned oil and gas giant, can move towards Paris alignment.

Alex explained that there are two commercially pragmatic and material steps Equinor can take towards Paris alignment: stop the exploration of new oil and gas reserves worldwide; and halt development of pre-FID fossil fuel projects outside of the Norwegian Continental Shelf.

Natasha Landell-Mills, Head of Stewardship at Sarasin & Partners, commented during the webinar that our report is “probably the most rigorous financial analysis … of oil and gas companies’ forward looking capex plans that starts from the perspective of actually meeting the Paris Agreement goals... I think the ACCR report is incredibly important and it should be one that is used as a model globally to look at other oil and gas majors.”

Rio Tinto commits to better climate advocacy

As you may recall, back in July ACCR disengaged from year-long discussions with Rio Tinto on improving its climate-related lobbying, following revelations the company engaged in negative advocacy that undermined its public commitment to an enhanced approach to climate advocacy.

Following months of pressure from institutional investors, in October, Rio Tinto issued a public statement in support of the Australian Government’s EPBC Act reforms, including support for the “transparent disclosure of project climate emissions”.

Company Strategy Lead, Naomi Hogan, said the outcome shows “activated and informed investors can make an impact on improving a company’s climate-related lobbying.”

“By listening to investors, Rio Tinto now has the opportunity to rebuild trust and demonstrate leadership by ensuring that its advocacy aligns with its public commitments on climate.”

ACCR will now commence re-engagement with Rio on its climate-related advocacy.

ACCR’s greenwashing proceedings against Santos heard by the Federal Court

ACCR’s greenwashing proceedings against Santos Ltd - the first court case in the world to challenge the veracity of a company’s net zero emissions plan - were heard by the Australian Federal Court from October to December.

We are expecting a judgment in the first half of 2025, and we’ll keep you updated on the result.

ACCR on the global stage

• Chief Scientist, Dr Dimitri Lafleur, presented to the 17th IAMC Annual Meeting in Seoul on the use of IPCC climate scenarios by heavy-emitting companies. Our Climate and Energy Analyst, Setu Pelz, also presented at the meeting.

• Brynn O’Brien appeared at PRI In Person Toronto on a panel that discussed how investor stewardship can address systemic risks such as climate change. Brynn also appeared at the Financial Times’ Moral Money Summit in New York, speaking on climate-related shareholder advocacy, litigation and backlash to the energy transition.

ACCR makes its voice heard at BHP’s 2024 AGM

Company Strategist and Lead Analyst, Fiona Deutsch, spoke at BHP’s AGM, urging the board to consider how it will be competitively placed amid a global shift towards zero emissions and low-carbon steel production.

“We recognise that partnerships are key to this transition, and BHP cannot do this alone, but reducing your direct investment now could risk falling behind your competitors who are currently ramping up their efforts in steel decarbonisation,” Fiona said.

92% of shareholders voted in favour of BHP’s climate plan, despite concerns raised by major investors, including the world’s largest asset owner, Norges Bank Investment Management (NBIM), who pre-declared opposition to the plan. NBIM’s stance has raised expectations for BHP to deliver a more detailed strategy for reducing Scope 3 emissions from steelmaking.

Active ownership delivers outcomes: BHP improves scope 3 disclosures and investors withdraw resolution

The resolution was co-filed by Denmark's largest pension fund, PFA Pension Fund, and Vision Super, along with ACCR. It asked BHP for greater transparency about its forward plans and investments for Scope 3 emissions reductions from the steel value chain, and was withdrawn following enhanced disclosures in the company’s 2024 Climate Transition Action Plan (CTAP).

BHP’s Scope 3 emissions, dominated by the processing of its iron ore and metallurgical coal into steel, account for 97% of its total emissions footprint.

“BHP has clearly heard that investors want greater insights into how it is tackling the critical issue of steel decarbonisation and has taken an important step forward,” said Company Strategy Lead, Naomi Hogan. “The disclosure provided by BHP on its planned investment in steel decarbonisation is vitally important because it allows shareholders to better assess how the company is positioning for the green steel transformation.”

ACCR’s analysis of BHP’s CTAP finds that while transparency has improved, the disclosed plan falls short on ambition and does not have a capital allocation strategy to match the scale of the decarbonisation challenge. At the upcoming AGM on 30 October, shareholders will have a one in three year opportunity to vote on BHP’s CTAP: ACCR will be voting “against”.

Rio Tinto’s anti-climate advocacy prompts ACCR to disengage from policy collaboration

In August, ACCR made the difficult yet necessary decision to disengage from year-long discussions with Rio Tinto on improving its climate-related lobbying. This followed revelations the company engaged in negative advocacy that undermines a public commitment to an enhanced approach to climate advocacy.

The fact that Rio Tinto undertook lobbying of the Australian Government only came to light due to a Freedom of Information (FOI) request from Greenpeace Australia Pacific.

“We will not participate in engagements that could rightly be perceived as greenwashing,” ACCR Company Strategy Lead, Naomi Hogan said. “The fact it [Rio Tinto] has provided a public commitment highlighting the need for greater transparency and the critical role of government policy signals in decarbonisation, and has then gone against this commitment behind closed doors, is hypocritical and a breach of trust.

Brynn wins Environmental Finance’s “Sustainability thought leader of the year, APAC” award

Independently judged by a panel of investors and industry experts, the Environmental Finance Sustainable Company Awards recognise industry excellence across the world stage. We were very pleased - though not surprised - to learn that Brynn is the recipient of this years’ “Sustainability thought leader of the year” award for the Asia-Pacific region.

ACCR calls Glencore to account as it holds on to coal

When the world’s largest publicly listed coal producer announced it was no longer proceeding with plans to demerge its coal operations, ACCR appeared widely in international media - calling on the company to explain its plans for managing its increased exposure to climate transition risk.

Over a (very busy) 24 hours, Company Strategy Lead, Naomi Hogan appeared in The Times, Agence France-Presse, The Australian, The Telegraph, the Financial Times and BBC’s World Business Report.

Majority vote against Woodside’s climate strategy

At Woodside’s 2024 AGM in April, a majority (58.4%) of shareholders voted against the company’s climate plan - the largest ‘no’ vote ever under the global ‘Say on Climate’ mechanism. A record-breaking 16.61% of shareholders also voted against the re-election of Chair Richard Goyder, smashing the previous highest dissenting vote against a Woodside Chair of 1.6%.

These results follow four years of pressure from shareholders, including ACCR, asking the company to improve its management of climate risk. This latest climate plan from Woodside was rejected by all major proxy advisory firms, at least three major Australian superannuation funds, some of the United States’ biggest pension funds, Norway’s largest private pension fund, and Britain’s biggest asset manager.

ACCR filed a members’ statement at the AGM against the re-election of Richard Goyder, outlining why we think as Chair, he should be held accountable for Woodside’s current approach. In our view, it is inconceivable for Richard Goyder’s board to continue its trend of dismissing shareholder concerns following this overwhelming rejection of Woodside’s climate plan.

Shell commits to shedding light on emerging market lobbying

In a major pivot, Shell plc announced in April that it will disclose information about its climate and energy lobbying activities in 5-10 of the emerging markets where it does significant business. As revealed by ACCR’s report, In the dark: gaps in Shell’s climate lobbying disclosures, the company has been failing to make these disclosures. Our research identified multiple examples of undisclosed lobbying by Shell and its industry associations, including for policies that risk locking in levels of fossil fuel demand misaligned with the Paris goals.

ACCR has been engaging with Shell on this issue, backed by our research, and along with institutional investors KLP and Sampension, co-filed a shareholder resolution asking the company to provide a global account of its material, direct and indirect, climate and energy-related lobbying. Following the commitment from Shell, the resolution was withdrawn.

Rio Tinto commits to improved disclosure of plans to rein in emissions

Following direct engagement by ACCR and institutional investors in Australia and Europe, Rio Tinto committed to enhancing its disclosures on how it plans to reduce scope 3 emissions from processing iron for steel production - a commitment that sets a new standard for iron ore producers globally.

Scope 3 emissions, predominantly from steel making, account for more than 95% of the total emissions footprint of iron ore miners, posing significant business risks in a decarbonising global economy. Rio’s investors will now be ahead of the curve in understanding how the company is planning to tackle this challenge.

Sustained pressure on the coal sector delivers emissions reductions

In May, Japan’s largest coal power operator, J-POWER, announced it would close five coal power generation units within domestic coal plants by FY2030, following two years of shareholder pressure. We estimate collectively these five coal unit closures will prevent the release of 16.2Mt of CO2 per year.

ACCR has been engaging with J-POWER for a number of years. In 2022 and 2023, along with institutional investors, we escalated to co-filing shareholder proposals at the company’s AGM - with the proposals receiving significant support. This welcome announcement by J-POWER shows the company understands its strategy needs to evolve in line with investor expectations.

Shareholders deliver Japan’s largest ever vote in support of climate lobbying resolution

Investors in Nippon Steel, the world’s fourth largest steelmaker, gave significant support for three climate-related shareholder proposals at the company’s AGM - including delivering the largest ever vote in support of a climate lobbying resolution in Japan.

Two of the proposals were co-filed by ACCR and Corporate Action Japan, and one by Legal & General Investment Management (LGIM) and ACCR. Given the significant support, improving and accelerating its decarbonisation strategy should now be a focus for Nippon Steel’s board.