Major U.S. pension funds plan to challenge the reappointment of Woodside's chairperson.
In the upcoming Annual General Meeting (AGM) of Woodside, an Australian energy giant, the reappointment of its chair and certain members of the leadership is under scrutiny. The two largest US pension funds, CalPERS and CalSTRS, along with Norwegian manager Storebrand, have declared their intention to vote against the reappointment of Woodside's chair due to concerns over the company's insufficient climate ambition and credibility in its climate transition plans.
These investors find Woodside’s climate transition action plan inadequate, criticizing it for not presenting ambitious or credible measures to reduce carbon emissions consistent with limiting global warming. This dissatisfaction leads them to oppose continuing leadership that they believe has overseen weak climate risk oversight at the company.
Storebrand's decision to vote against Ann Pickard, the chair of Woodside, is explicitly motivated by climate concerns. Under Pickard's supervision, Woodside has embarked on sustained fossil fuel production and committed $18 billion to an LNG project in the US, a move that is expected to add 1.6 billion tonnes of CO2 emissions over the next 40 years.
Similarly, CalSTRS' decision to vote against Woodside's leadership is not directly motivated by climate concerns. However, the fund has voiced its opposition to the re-election of Ben Wyatt and the election of Anthony O'Neill, citing the need for more robust climate governance within the company.
The opposition to Woodside's chair and some of its leadership is due to concerns over the firm's climate strategy. Last year, a majority of 58% of investors opposed Woodside's climate transition plan. In response, Woodside opted not to put the climate transition strategy to a vote for this year's AGM, a move that has further fuelled investor dissent.
The news about the institutional investors' intentions was reported in The Australian. The AGM is scheduled for tomorrow, and the turbulent atmosphere surrounding it is expected to reflect the growing pressure on companies to demonstrate their commitment to addressing climate change. The total assets managed by CalPERS and CalSTRS combined amount to approximately $US850 billion, a significant influence in the corporate world.
The Australasian Centre for Corporate Responsibility (ACCR) has also called for a vote against all directors, reflecting a broader demand for stronger governance to ensure companies address climate risks effectively and align with global climate targets.
This stance by major investors underscores the growing importance of climate action in the corporate world. Companies that fail to demonstrate a credible and ambitious approach to climate change risk facing increased scrutiny and opposition from their shareholders.
- The institutional investors' criticism towards Woodside's leadership is centered on the company's perceived inadequacy in addressing climate change, as they find the climate transition action plan lacking in ambitious and credible measures to reduce carbon emissions.
- Storebrand's intention to vote against Ann Pickard, the chair of Woodside, stems from climate concerns, particularly her supervision over the company's continued fossil fuel production and large investments in projects that could significantly increase carbon emissions.
