AllianzGI to vote against Woodside Energy’s climate transition plan

Written by Michael Griffiths

11/04/2024

Allianz Global Investors (AllianzGI) has announced that it will vote against Woodside Energy’s climate transition action plan as well as the election of the chair of the board.

The investment manager will vote against both the plan and the re-election of chair of the board, Richard Goyder, at the upcoming annual general meeting of the shareholders of Woodside Energy Group on 24 April.

AllianzGI does not exclude investments in the oil and gas sector because it currently provides critically important services by supplying a significant proportion of the energy mix in many markets.

However, the group does so with the expectation that the sector overall, and its portfolio companies in particular, will chart their own path to adapt to a future that is sustainable.

It suggested this will “aid efforts to control climate change” within recognised targeted levels, primarily the Paris Agreement, therefore reducing associated financial risks to us and our clients as providers of capital.

Global head of sustainable and impact investing at AllianzGI, Matt Christensen, said that Woodside Energy does not reflect a “sufficient level of action” to meet Paris Agreement commitments.

“Woodside Energy’s recently published climate transition action plan and 2023 progress report includes several points of improvement, such as scaling back the use of carbon credits for scope one and two emissions as well as specifying an emissions abatement target on its scope three approach,” Christensen commented.

“However, we think that it is likely to still fall short of a Paris Alignment aligned trajectory, something which we have previously discussed with the company and are looking forward to continuing to engage upon following the AGM.

“Moreover, for companies where climate is a material issue, we view the board as ultimately accountable for the development of a transition plan, and consequently we will not be able to support the re-election of the chair of the board, Richard Goyder.”

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