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.

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 Following the commitment from Shell, the resolution was withdrawn.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.