(Reuters) – Woodside Energy Group Ltd faces an investor backlash at its annual general meeting on Friday, as shareholder groups call for a vote against its executive pay and seek to remove three directors over what they say is an inadequate climate strategy.
Investors want the country’s biggest independent oil and gas producer to publish a comprehensive climate strategy after its 2022 plan released in February closely resembled its 2021 plan, which was voted against by nearly 49% investors for failing to set meaningful emission reduction targets.
However, Woodside’s inadequate response to investor feedback about its climate plans has brought “genuine governance concerns”, said activist investor group the Australasian Centre for Corporate Responsibility, along with Vision Super and Betashares, in a recent joint statement.
The groups said they plan to vote against the re-election of directors Ian Macfarlane, a former Australian resources minister, former Shell Singapore chairperson Swee Chen Goh and former ConocoPhillips senior executive Larry Archibald.
All three are on Woodside’s sustainability committee, the investors said.
Woodside did not immediately respond to a Reuters request for comment.
Proxy advisory firm Glass Lewis plans to support the campaign against the three directors, citing environmental concerns, and direct votes against Woodside’s remuneration report, Australian media reported.
If more than a quarter of shareholders vote against a company’s remuneration report for two AGMs in a row, the shareholders may call an additional vote on whether to remove the entire board.
The pressure comes at a time when Woodside is clocking record profits boosted by a surge in output and pouring billions into its growth projects.
Last month, activist shareholders voted against the remuneration report of No. 2 oil and gas producer Santos, saying executive incentives were driving up investments in growth projects, potentially raising carbon emissions and reducing shareholder value.
(Reporting by Sameer Manekar in Bengaluru; Editing by Byron Kaye and Rashmi Aich)
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