AGL demerger plans underwhelm, ignore climate concerns
The Australasian Centre for Corporate Responsibility (ACCR) is commenting on the details of AGL Energy’s planned demerger, published today.
Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:
“Today’s announcement is quite underwhelming and raises serious questions about the competence of the existing board.
“By appointing former BHP executive Graeme Hunt as CEO and former Oil Search CEO Peter Botten as Chair of Accel Energy, investors will be rightly concerned about the leadership’s climate competence and capacity to successfully transition that company out of fossil generation.
“Investors continue to be frustrated by AGL’s continued denial of the need to bring forward the closure dates of its Bayswater and Loy Yang A coal-fired power stations.
“The IEA Net Zero report recently recommended that OECD countries phase out all subcritical coal‐fired power plants by 2030. Yet AGL plans to keep running Baywater to 2036 and Loy Yang A to 2048.
“AGL has failed to disclose the future emissions intensity of Accel Energy’s generation portfolio, despite executives’ bonuses currently being linked to this metric. AGL has not provided any detail about the future remuneration structure for Accel Energy.
“In complete disregard for its responsibilities, AGL has suggested that it may try to delay or avoid rehabilitation. It said “successful repurposing of the land may defer remediation requirements and potentially reduce remediation” (slide 16).
“The Loy Yang site covers approximately 6000 hectares, yet AGL has provisioned just $344 million to remediate four sites. Repurposing a site that large is simply not credible and further demonstrates that AGL is not concerned about the Latrobe Valley community.”
ACCR filed a shareholder resolution to AGL Energy in 2020, calling for the early closure of its Bayswater and Loy Yang A coal-fired power stations, which was supported by >20% of shareholders, including the world’s largest asset manager, Blackrock.
AGL Energy - Electricity output by primary energy source
|Landfill gas, biomass and biogas||126||23||0|
|Renewables share (%)||8.5%||9.8%||10.0%|
AGL Energy - Operational greenhouse gas footprint (material sites and fuels)
|Bayswater Power Station||13,802||14,196||14,041|
|Liddell Power Station||7,881||8,575||10,012|
|AGL Loy Yang||20,093||18,790||16,924|