The board said on Monday that Australia was at a key juncture in the transition to clean energy and believed the closing dates for its Bayswater power plant in 2035 and the Loy Yang coal-fired power plant in 2045 “would continue. accelerating “.
AGL’s coal and gas power plants are the main sources of greenhouse gas emissions in Australia, accounting for 8% of the country’s carbon footprint.
In a post on social media, Cannon-Brookes said it was a “big day for Australia”.
“We welcome the opportunities for decarbonisation with Australian courage, tenacity and creativity,” he wrote. “A lot of work, but we can do that.”
The billionaire’s private investment arm, Grok Ventures, has accumulated 11.3% interest in AGL and is trying to accelerate the coal company’s planned exit in 2045 to a decade in an effort to help the world avoid catastrophic levels of global warming. .
Cannon-Brookes said last week that he would look for two AGL board candidates if he continued his campaign to block the split.
Hunt and his fellow AGL executives had been insisting for months that the spin-off would unlock shareholder value by creating a carbon-neutral, clean energy retailer, known as AGL Australia, that would be able to attract investors. they are moving further and further away from fossils. fuels. Meanwhile, they had argued that housing the giant AGL power plants in a separate company, Accel Energy, would allow for a greater focus on transforming coal sites into energy centers that could also house renewable energy and batteries.
Energy giant AGL is the largest contributor to the country’s carbon emissions. Credit: Paul Jones
However, AGL’s plan for Accel Energy to continue burning coal until the 2040s has come under increasing pressure from some of its largest investors, who are increasingly pushing Australia’s major emitters and around the world for faster decarbonization.
More than half of AGL investors, including US investment giants BlackRock and Vanguard, challenged the board last year and voted in favor of a climate activist resolution calling for new targets that would require a prior exit in accordance with the objectives of the Paris Agreement of limiting global warming to 1.5. degrees.
Shareholder activists said Monday that the AGL board had ignored its shareholders and “has now paid the price.”
“The bloodbath in the AGL boardroom today was years old and long overdue,” said Harriet Kater of the Australian Center for Corporate Responsibility.
“With the abandonment of the spin-off, the departure of four directors is a welcome step towards a better future for AGL shareholders.”
“AGL desperately needs directors who have direct experience in the development of clean energy at scale.”
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Analysts said Monday that it looked like AGL’s planning for a new strategic direction was a “return to the starting point,” and called the failed split a “costly exercise.”
“AGL Energy has spent about $ 160 million so far on the failed merger proposal,” said RBC Capital Markets analyst Gordon Ramsay. “Perhaps part of this expenditure may still be useful, as there is the possibility of using part of the ‘extensive analytical work’ and ‘a comprehensive assessment of the strategic plans’ that were developed for AGL Australia and Accel Energy for to new analysis “.
HESTA, which is believed to own 0.4% of AGL’s shares on behalf of its members, said last week that it was not “convinced” that the merger proposal would accelerate decarbonisation to meet the AGL’s goals. Paris climate agreement to limit global temperature rise to 1.5. degrees. He also said he was concerned about the risk of coal-fired power plants becoming “stranded assets” and believed the board had not adequately described how it would support communities affected by possible plant closures.
“We can’t just get rid of the risk that Australia will be slow in its transition to a low-carbon future,” said HESTA CEO Debby Blakey.
“Responsible investors have a responsibility to their members to go where the biggest issues are and when the owners first try to change the behavior of these companies.”
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