Origin Energy’s Science Based Target to be revoked over climate wrecking gas basins

The Australasian Centre for Corporate Responsibility​ (ACCR) is commenting on Origin Energy’s strategy refresh, published today.

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

“Despite Origin’s commitment to bring forward the closure of Eraring to 2025 and replace its capacity with renewables and storage, it cannot claim to be aligned with a 1.5°C pathway while it continues to pursue significant new gas basins.

“Origin’s gas expansion plans stretch across the Bowen, Surat, Cooper Eromanga, Beetaloo and Canning Basins.

“These are nothing short of climate-wrecking projects.

“Origin’s Science Based Target will shortly be revoked due to its involvement in oil and gas production and exploration.

“Investors have relied on the validity of this accreditation for far too long and must hold Origin to account for taking backward steps against the interests of shareholders. This looks remarkably similar to the beginning of the end of AGL.

“The IPCC and the International Energy Agency have concluded that we cannot afford any new oil and gas developments, if we are to limit global warming to 1.5°C.

“This refresh to strategy fails to address the concerns of more than 43% of Origin shareholders, who  supported ACCR’s 2021 resolution calling for the alignment of capital expenditure with a 1.5°C pathway.

“Origin has made huge strides forward in its electricity business, but it will remain a climate laggard while it continues to pursue gas expansion plans.”

Background

On 7 March 2022, the Science Based Targets Initiative announced that companies involved in the exploration, extraction, mining and/or production of oil, natural gas, coal or other fossil fuels cannot join the initiative. Origin Energy’s SBTi-accredited target will be revoked by 10 March 2022. Origin was originally accredited in December 2017.

Origin Energy’s Strategy Refresh, 9 March 2022, P35