Australian oil and gas giant Woodside has faced a major setback after 58% of its shareholders rejected the company’s decarbonization plans as inadequate at its annual shareholder meeting. The vote underscores growing investor pressure on companies to take bolder action on climate change and aligns with the company’s recent ‘Say on Climate’ resolution.
Woodside’s high-profile chairman, Richard Goyder, defended the company’s strategy, emphasizing the complexity of operating in an energy sector undergoing a rapid transition. However, several of the company’s largest shareholders, including superannuation funds and asset managers, have expressed concerns that Woodside’s plans fall short of the ambitious goals set out in the Paris Agreement.
Activists and shareholders have criticized Woodside’s reliance on carbon offsets rather than direct emissions reductions, its inadequate efforts to reduce its customers’ carbon footprint, and the lack of transparency in its plans for gas production from new fields. While Woodside has set a target to invest in “new energy” products capable of abating 5 million tonnes of carbon dioxide by 2030, it has yet to establish a target for reducing Scope 3 emissions, which account for the greenhouse gases released when customers burn or process its products.
Despite the vote, Woodside’s chief executive, Meg O’Neill, expressed the company’s commitment to playing a role in addressing climate change and supporting economic growth in Asia. She emphasized that the company will continue to set goals based on the available science while prioritizing capital allocation and energy security.
Goyder expressed gratitude to shareholders for their engagement and stated that the board would carefully consider the outcome of the vote. The outcome of this vote is a clear signal that investors are increasingly demanding that companies take more meaningful action on climate change and align their strategies with the goals of the Paris Agreement.
