Woodside Energy encountered significant shareholder resistance on Wednesday as investors rejected its climate transition plan, highlighting growing concerns among activists regarding the company’s fossil fuel projects. Despite this setback, the chairman managed to retain his position following a contentious vote.
The rejection of Woodside’s climate plan, with 58% of votes against it, underscores the mounting pressure on the company to adopt more ambitious measures to reduce carbon emissions.
Chairman Goyder expressed disappointment but emphasized the board’s commitment to engaging with shareholders to address concerns.
This outcome reflects a notable increase in opposition compared to a similar vote two years ago, signaling a growing discontent with Woodside’s climate strategy.
Efforts to unseat Goyder also fell short, although his margin of victory narrowed significantly, indicating shareholder dissatisfaction.
Major pension funds and proxy advisor Glass Lewis supported the campaign against the climate plan and Goyder, reflecting widespread investor sentiment for more stringent climate action.
During a heated meeting, Goyder defended Woodside’s position, citing challenges in transitioning to new energy projects while maintaining profitability.
Activists argue for a shift away from new oil and gas ventures and criticize the company’s reliance on carbon credits to meet emission targets.
Despite the pushback, Woodside maintains a substantial portfolio of new projects and aims for net zero emissions by 2050 for Scope 1 and 2 emissions.
Goyder reiterated the company’s commitment to sustainability and climate responsiveness, citing ongoing engagement with investors.
As shareholder activism continues to gain momentum, Woodside faces mounting pressure to revise its climate strategy and adopt more ambitious measures to address climate change effectively.
