More than half the shareholders of AGL Energy Ltd voted on Wednesday, September 22, for the company to disclose emission targets for its soon-to-be demerged entities, signalling brewing tensions over the Australian top power producer’s commitment to climate goals.
According to Reuters, 55 per cent of shareholders supported a motion for AGL to set “short-, medium- and long-term” decarbonisation targets for AGL Australia and Accel Energy, both of which may be demerged in less than one year.
The resolution, however, could not be tabled as it depended on the passage of a separate motion to amend the company’s constitution, AGL said, adding that the amendment motion did not receive the required shareholder support.
The company also said it recognises that accelerated action is required to address climate change as part of the demerger process, but it does not believe the resolution is in the best interest of its shareholders.
Related article: AGL’s Broken Hill battery gets planning go-ahead
AGL had warned last month of a near 60 per cent plunge in fiscal 2022 profit due to a collapse in wholesale power prices, government pressure to cut retail rates, and waning investor appetite for coal-fired power. Its shares had been battered in the last two years, losing about 70 per cent during the period.
The company expects to split into a bulk power generator—AGL Australia—and a carbon-neutral energy retailer—Accel Energy—by June next year in its efforts to deal with the pressures of transitioning into clean energy.
Accel Energy will be a 15-20 per cent shareholder in AGL Australia to enable it to share in value creation, with no associated board position.
Anticipated completion of demerger is earmarked for the fourth quarter of FY22, subject to final board, regulatory and shareholder approvals.
