Incitec Pivot must set Paris-aligned targets

The Australasian Centre for Corporate Responsibility​ (ACCR) has filed a shareholder resolution with ASX-listed explosives and fertiliser manufacturer Incitec Pivot Ltd (ASX:IPL), calling on the company to set emissions reduction targets aligned with the Paris Agreement. The resolution also calls on the company to align its capital expenditure and remuneration with those targets.

The resolution and supporting statement are available here.

Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“While Incitec Pivot has paid lip service to the Paris Agreement, its emissions have increased 34% since 2015. Its existing target to reduce emissions by 5% by 2026 (on 2020 levels)—is unambitious to say the least and significantly lags those of its ASX-listed peers, including Orica and Wesfarmers.

“Incitec Pivot is the largest industrial user of gas on the east coast of Australia (~35 petajoules p.a.), yet has not committed to alternative sources of feedstock, and is actively pursuing the 270 petajoule Range coal seam gas project in the Surat Basin.

“Incitec Pivot has ignored the science of climate change for too long, and continues to drag its heels on addressing the significant climate risk in its business.

“Incitec Pivot’s recent MoU with Fortescue Future Industries included no capital commitment or timeline to produce green hydrogen. The argument that options are limited for hard-to-abate sectors is closing fast. Incitec Pivot should develop and disclose an ambitious decarbonisation plan to its shareholders.

“Incitec Pivot has not made any material investment in decarbonisation, nor are its executives incentivised to reduce emissions.

“Investors must turn their attention to the demand side for fossil fuels, just as much as the supply side, if we are to have any chance of limiting global warming to well below 2°C.”