AustralianSuper helped Woodside stop investor protest vote over climate policies, analysis shows
Australia’s biggest superannuation fund helped Woodside Energy fend off a shareholder revolt over its climate policies, nullifying concerns raised by global investors, according to new analysis.
Activist group Market Forces said AustralianSuper recently voted for the re-election of Ian Macfarlane, a senior Woodside director and longtime sustainability committee member at the oil and gas giant.
The former resources minister was the target of a campaign by eco-conscious investors, activists and international funds.
They registered a strong protest vote against Macfarlane, but fell short in their bid to stop him being re-elected to the board at the annual general meeting in late April.
“By throwing its full support behind
Woodside’s board, AustralianSuper has signalled its tacit approval of the company’s oil and gas expansion strategy,” Market Forces said.
It said the large super fund had failed to use its influence to demand an end to Woodside’s oil and gas expansion plans.
Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup
Market Forces said it paired its investment analysis with share voting data to identify how large shareholders voted. It found that major global investor BlackRock voted against the re-election of Macfarlane, as did several funds run by investment manager Vanguard.
BlackRock was contacted for comment.
A spokesperson for AustralianSuper said it supported Woodside’s director nominations after the company pledged to increase engagement with shareholders over its climate policies.
“We have met with Woodside on multiple occasions to discuss the company’s net-zero strategy, including its capital allocation and carbon reduction initiatives,” the spokesperson said.
Woodside is a major corporate target for activists due to its planned expansion of operations including the proposed Burrup Hub extension.
Protesters recently targeted the family home of Woodside chief executive, Meg O’Neill, in what the company claimed was an unacceptable level of activism designed to threaten and intimidate.
The Perth-headquartered company has said Woodside projects were needed for decarbonisation, with gas used as an alternative to coal for electricity generation as the international community works to meet climate goals.
Woodside’s climate report, which last year recorded a high level of dissent, will be put back in front of shareholders next year for a nonbinding vote.
Many energy companies are grappling with their commitments to cut greenhouse gas emissions while deriving returns from their primary business of extracting fossil fuels.
Gas supply crunches in Australia’s east have also raised concerns over energy security, which companies including Woodside have pledged to help protect against.
According to Intergovernmental Panel on Climate Change analysis after the landmark 2015 Paris agreement, greenhouse gas emissions from existing fossil fuel infrastructure are more than enough to push the world beyond its climate goals.
The Market Forces analysis found Australia’s biggest 30 super funds’ default investment options own 8% of Woodside’s shares and 9% of Santos, giving them a significant voting bloc.
“This new analysis shows AustralianSuper
has continued that trend of buying more shares in Woodside, while others have gone in the opposite direction and reduced their stake,” the report said.