Oil Search adopts ‘Say on Climate’

The Australasian Centre for Corporate Responsibility​ (ACCR) has welcomed the announcement from PNG-based oil and gas company Oil Search (ASX:OSH) to adopt the Say on Climate initiative and provide shareholders with a non-binding vote on the company’s Climate Change Report at its 2022 AGM.

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

“We welcome Oil Search’s commitment to transparency and its acknowledgement of the need for a decarbonisation strategy. We will continue to engage with the company over the coming weeks about a recurring annual vote beyond 2022.

“Oil Search’s only climate target relates to emissions intensity. It has no plan to reduce emissions over the short-, medium- or long-term.

“Oil Search is planning to substantially increase production in the medium-term, which will come at the expense of emissions reductions in the critical decade to 2030.

“Say on Climate is quickly becoming an industry standard. Other ASX companies would be wise to get ahead of the curve, and voluntarily commit to providing shareholders with an annual vote on their climate reporting.

“Due to the rapid transition taking place in the energy sector, it is imperative that shareholders are provided with the information required to assess the future earnings and value of these companies.

“The Say on Climate framework will provide shareholders with the opportunity to send a clear signal to the board about whether the company is effectively managing the risks of climate change.”

Background

Link to ACCR’s Say on Climate resolution to Oil Search Ltd.

Say on Climate is a major, global climate-corporate governance initiative launched in 2020 by TCI Fund Management, the activist fund run by Chris Hohn, and its charitable foundation, the Children’s Investment Fund Foundation (UK) (CIFF).

The aim of the initiative is to generate a widespread increase in focus of listed companies and their investors on developing and delivering Paris-aligned plans, with increased accountability around substance of and performance against those plans through annual shareholder votes.

Resolutions have been filed with a number of companies globally, and statements of support made by various asset managers and asset owners. Mark Carney (UN Special Envoy for Climate Action and Finance) is a public supporter of the initiative.

Learn more about the Say on Climate framework here.