Origin must align lobbying and capex with Paris Agreement
The Australasian Centre for Corporate Responsibility (ACCR) has filed two shareholder resolutions with Origin Energy Ltd (ASX:ORG), requesting the company:
- strengthen its review of industry associations to ensure that lobbying is consistent with the Paris Agreement;
- align its capital expenditure with a 1.5°C pathway.
Commenting on the resolution, Dan Gocher, Director of Climate and Environment, said:
“Origin’s lobbying and capital expenditure are completely at odds with its commitment to a 1.5°C pathway.
“The advocacy by Origin’s industry associations throughout the COVID-19 pandemic has been fundamentally at odds with the Paris Agreement’s goals: demands for government support and subsidies, fast-tracked approvals for new gas developments, and an aggressive deregulation agenda.
“The Australian Petroleum Production and Exploration Association (APPEA) claims credit for the Government's ‘gas-fired recovery’ and Origin is a direct beneficiary of these lobbying efforts.
“The greenwashing has to be called out - it is unacceptable that both organisations claim to support the Paris Agreement whilst seeking to open up new gas basins.
“As the IEA’s ‘Net zero by 2050’ report concluded, the days of claiming gas expansion is compatible with limiting warming to 1.5°C are over. Such claims mislead investors and expose companies to escalating litigation risk.
”Capital allocation provides direct insight to how a company is prioritising decarbonisation and Origin is investing millions in oil and gas exploration and appraisal in the Beetaloo Basin. Twiggy Forrest has seen the light and is exiting fracking on climate grounds, when will Origin?
“Origin has gained significant mileage out of its questionable science-based target for 2032, which accommodates emissions growth and doesn't capture gas exports. It is time for genuine action if it is genuinely committed to a pathway consistent with 1.5°C.”