Largest Australian companies failing on climate

The Australasian Centre for Corporate Responsibility​ (ACCR) welcomes the publication of the Climate Action 100+ Net-Zero Benchmark, released today.

Commenting on the announcement, Dan Gocher, Director of Climate and Environment, said:

“None of the 12 Australian companies in the Climate Action 100+ initiative have aligned their capital expenditure with the Paris Agreement. BHP, Origin Energy, Santos and Woodside all plan to significantly increase fossil fuel production over the next 5-10 years.

“Despite widespread support for net zero emissions by 2050 or sooner, only Woolworths has set an ambitious 2030 target. Everyone else is kicking the can down the road.

“No Australian company has committed to significantly reduce their Scope 3 emissions, which is now a key demand from institutional investors.

“The lack of progress from Australian companies is clear for all to see. Investors must now be prepared to take unprecedented action. Support for shareholder resolutions and voting against directors would send a very clear signal that delay will no longer be tolerated.

Commenting on the benchmark overall, Brynn O’Brien, Executive Director at the Australasian Centre for Corporate Responsibility (ACCR) said:

“This benchmark heralds the end of greenwashing. This analysis lays out, in unambiguous detail, the work ahead. We wholeheartedly welcome it.

“It is cast iron proof that the world’s largest emitters are failing to materially rein in their impact on the planet, and that investor strategies to engage them have not yet risen to the challenge.

“It is a reality check for global institutional capital’s engagement strategies with large emitters. There is no longer room for praising company posturing and losing sight of the need for genuine progress.

“In the context of the emerging global norm of companies offering shareholders an annual vote on their transition strategies, this benchmark analysis will provide an incredibly useful baseline."

Background

See below the collated performance of ASX-listed companies in the CA100+ initiative:

ACCR has filed a ‘Say on Climate’ resolution with Oil Search which will be voted upon at its AGM on 30 April.

ACCR withdrew ‘Say on Climate’ resolutions at Santos and Woodside last week, after both companies committed to giving shareholders a vote on their climate strategies at their 2022 AGMs.

ACCR’s ‘Cutting Carbon’ report, published in February, collated the climate commitments of the 25 largest emitters on the ASX, and how investors should engage with them.