Woodside Energy withstands investor unrest at AGM
Woodside Energy has withstood investor backlash against inadequate climate policies at this year’s AGM.
Australia’s largest oil and gas producer faced resistance for the re-election of three directors amid mounting criticism from shareholders for failing to set meaningful emission reduction targets.
Activist investor groups, including Market Forces, campaigned to vote against the re-election of Ian Macfarlane, director and member of Woodside’s sustainability committee.
However, the campaign failed after the protest vote only received 34.8% of votes and the remuneration report recorded a 20% vote against it.
The average Australian director is supported by more than 95% of investors, however Macfarlane only received an approval vote of only 65%.
The groups also failed to vote against the re-election of former Shell Singapore chairperson Swee Chen Goh and former ConocoPhillips senior executive Larry Archibald.
Even though the vote failed to prevent the re-election, the size of the protest vote represents a warning to Woodside as little resistance was expected at its AGM after reporting strong profits.
Will van de Pol, acting executive director of Market Forces, said: “The extraordinary low vote for Ian Macfarlane sends a clear message that directors risk losing their positions if their company fails to take real climate action.”
Investors also demanded Woodside publish a comprehensive climate strategy after its 2022 plan closely resembled its 2021 plan, which was voted against by nearly 49% of investors.
Woodside’s current carbon emission reduction targets aim for a 15% reduction by 2025, 30% reduction by 2030 and net zero by 2050.
According to the oil and gas producer, these targets are in line with the Paris Agreement and meet global emissions reduction goals.
Woodside has also declined to set emissions targets on the oil and gas it sells to buyers as it believes inconsistent reporting makes it difficult to accurately assess scope three emissions.
Instead, Woodside has committed to spending $5bn on new energy products by 2030.
Investors also criticised Woodside’s plans to expand its operations and sought to prevent any new gas developments, over fears they will exacerbate the climate crisis.
Woodside Energy is among other oil and gas producers to face shareholder pressure to improve climate policies during this years’ annual general meetings.
In April, activist investor group Follow This urged shareholders to support its proposal to align BP’s climate policy with the Paris Agreement.
Santos Ltd also faced shareholder criticism after it received a significant vote against its climate transition action plan.
Last Updated: 2 May 2023