The energy group “does not demonstrate a sufficient level of action to respect the commitments of the Paris Agreement,” explains Matt Christensen.
Allianz Global Investors, one of the world’s leading active management players, today announces its intention to vote against item 6, “Climate Transition Action Plan and 2023 Activity Report”, at the next Annual General Meeting of Shareholders of Woodside Energy Group Ltd. which will be held on April 24, 2024. The company will also vote against resolution 2a, “the re-election of the chairman of the board of directors”.
Matt Christensen, Global Head of Sustainable and Impact Investing comments: “In our view, Woodside Energy is not demonstrating a sufficient level of action to meet the commitments of the Paris Agreement. The company’s recently published Climate Transition Action Plan and 2023 Progress Report includes several areas for improvement, such as reducing the use of carbon credits for Scope 1 and 2 emissions as well as specifying an emissions reduction target on its Scope 3 approach. However, we believe it is likely to fall short of a trajectory aligned with the Paris Agreement, a subject we have previously discussed with the company and which we look forward to continuing to engage with after the General Meeting. Furthermore, in companies where climate is an important issue, we consider that the board of directors is ultimately responsible for developing a transition plan and, therefore, we will not be able to to support the re-election of its current president, Mr. Richard Goyder.
Allianz Global Investors does not rule out investments in the oil and gas sector, as it currently provides critically important services by constituting a significant part of the energy mix in many markets. However, Allianz GI wants the industry as a whole, and its portfolio companies in particular, to chart their own path to adapt to a sustainable future. This will contribute to efforts to control climate change within the targets set, primarily under the Paris Agreement, thereby reducing the associated financial risks for us and our clients as capital providers.
For companies in high-emitting sectors, beyond a strong commitment, Allianz GI expects effective actions. It is important to achieve strong medium-term emissions reductions from Scopes 1 and 2 and to see what these reductions will be on a gross basis, the use of carbon credits being inappropriate in this case. Companies must demonstrate their commitment to product and technology transition, supported by capital investments. Finally, Allianz GI expects companies to demonstrate that they are working to reduce emissions responsibly further down the chain, within Scope 3.
Earlier this year, Allianz GI published its annual analysis of its 2023 general meeting voting rights worldwide, based on its participation in 9,137 (2022: 10,205) general meetings. shareholders and its vote on nearly 100,000 (95,512) resolutions submitted by the board of directors and shareholders.
Allianz GI voted “against”, refused or abstained from voting on at least one agenda item at 71% of meetings worldwide (2022: 69%). Globally, the company opposed 18% of capital-related proposals, 24% of director elections and 41% of remuneration-related proposals, reflecting its high governance expectations.
