AGL Energy is an electricity, gas and essential service retailer operating Australia’s largest electricity generation portfolio.
AGL Energy (AGL) operates Australia’s largest electricity generation portfolio, comprising 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 FY21 were 40.8 million tonnes CO2-e, or approximately 8% of Australia's total emissions.
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.
In March 2021, AGL announced that it would demerge into two entities: Accel Energy and AGL Australia. On 30 May 2022 the demerger was abandoned by the board due to the probability it would not be supported by shareholders.
At the 2022 Annual General Meeting, four directors nominated by Grok Ventures (Christine Holman, Kerry Schott, Mark Twidell and John Pollaers) received majority support and joined the company board. AGL also received a ‘first strike’ on remuneration.
ACCR is commenting on the announcement that AGL Energy Limited Chair, Patricia McKenzie, will retire in February 2025 and will be replaced by Miles George as Chair-elect.
A late-starter to the energy transition, AGL needs to fire up its tenacity if it wants to deliver and enhance its strategy, ward off the competition nipping at its heels and ensure it doesn’t return to being viewed as a company existing primarily to sweat its coal assets.
ACCR is commenting on the results of the AGL Energy (ASX: AGL) 2022 Annual General Meeting, where the four directors nominated by Grok Ventures received majority support and will join the company board.
ACCR is confident that with a suitably qualified CEO and refreshed board, AGL Energy Ltd (ASX:AGL) will produce a significantly enhanced CTAP in the next 12 months.
ACCR will vote against AGL Energy’s (ASX: AGL) climate plan at the company's upcoming AGM, on November 15, 2022. ACCR will also be voting against the re-election of AGL Chair, Ms Patricia McKenzie.
ACCR is commenting on AGL Energy’s (ASX: AGL) announced Strategic Review and Climate Transition Action Plan (CTAP) including the closure of the Loy Yang A power station.
ACCR is challenging AGL Energy (ASX:AGL) directors’ claims that the takeover bid by the Brookfield consortium does not represent fair value for shareholders.
ACCR is commenting on the board of AGL Energy’s (ASX:AGL) decision to reject an unsolicited, non-binding takeover bid from a consortium of investors led by Brookfield Asset Management.
Comment on the results of AGL Energy’s (ASX:AGL) annual general meeting, at which ACCR’s shareholder resolution calling for Paris-aligned targets was supported by 52.56% of shareholders.
Unfortunately for AGL shareholders, the market will take care of replacing that capacity, which will make AGL’s coal-fired power stations unprofitable and destroy even more shareholder value.
Tomago aluminium smelter will switch to predominantly renewable energy by 2029. It is the final nail in the coffin for AGL's Bayswater coal-fired power station.
Despite saying that AGL couldn’t commit to Paris-aligned targets for the proposed demerged companies, as that would be a matter for the new boards, it has now made this commitment to ‘Say on Climate’.
Recent meetings with members of the Board suggest AGL is not prepared to set Paris-aligned targets, despite that now being a clear expectation of emissions intensive companies.
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.
AGL is Australia’s largest emitter, responsible for approximately 8% of annual emissions. Its actions will have a real impact on Australia’s emissions trajectory.
“This is a problem largely of the companies’ own making, having acquired the coal-fired power stations from state governments in the last decade, knowing full well the risks embedded in emissions intensive assets”.
ACCR Shareholder Resolution and supporting statements to AGL Energy Ltd (ASX:AGL), requesting the company bring forward the closure dates of its Bayswater and Loy Yang A coal-fired power stations.
