AGL must lead the energy transition

The Australasian Centre for Corporate Responsibility​ (ACCR) is challenging AGL Energy (ASX:AGL) to embrace the energy transition ahead of its extraordinary investor update scheduled for Tuesday 30 March.

Commenting on the challenge AGL is facing, Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“While AGL, and Brett Redman in particular, are facing a problem of their own making, there is an enormous opportunity before them— to embrace the energy transition and assist Australia achieve its Paris Agreement commitments.

“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.

“AGL’s share price has halved in the last year, and it will continue to lose major investors in the absence of a genuine transition plan.

“The planned closure dates for Bayswater (2035) and Loy Yang A (2048) must be brought forward in order to reduce emissions across the National Electricity Market (NEM) sooner, and protect the health of Hunter Valley and Latrobe Valley communities, respectively.

“The 2021 AEMO Gas Statement of Opportunities highlights the flatlining of industrial demand for fossil gas, along with the opportunity to further decrease demand through household electrification, fuel switching and energy efficiency. AGL should exploit this opportunity by abandoning the Crib Point project and committing to a 100% renewable electrification strategy for its large and small retail customers.

“AGL is at a crossroads. It can embrace the energy transition by accelerating its decarbonisation and set itself up for future growth, or it can continue to delay, and be a bystander as the transition happens around them.”