Institution Theme Category Industry
  • BlackRock
  • Environmental
  • Climate
  • Energy
Company Year Market Link
AGL Energy Ltd. 2020 N/A https://www.blackrock.com/corporate/literature/press-release/blk-vote-bulletin-agl-oct-2020.pdf

We have a long and constructive history of engagement with AGL. In our continuous dialogue with company leadership we have discussed a range of topics, including climate risk, corporate governance, remuneration, human capital management and risk oversight processes. We recognize AGL’s thorough assessment of climate risk and its significant investment in renewables to date. Further, based on the company’s disclosures and our engagement, we anticipate that AGL will continue to strengthen its approach to managing the climate risk inherent in its business, including considering future plant closures as discussed in its own TCFD scenario analysis:
“The results of the scenario analysis allow AGL to consider a series of options of what might happen over the next three decades. This in turn provides AGL with the ability to adjust our strategy to ensure continued resilience. AGL’s commitment to not extend the life of our coal-fired power stations remains unchanged.” The company has already publicly stated that “it will work responsively and responsibly to harness the power of these three forces – customers, community and technology – to support and enable the transition.”
We encourage AGL to continue to develop its strategy to transition its business model to operating under a 1.5- degrees scenario and position itself to respond to the continued evolution of the energy sector and policy environment in Australia longer term. This is particularly relevant given the potential for the Loy Yang A plant to operate until 2048, when it would be over sixty years old, as operational concerns in relation to reliability and safety increase. Another significant factor is the capital expenditure needed to maintain this plant, which has been growing and will likely continue to increase as the plant ages.

Details

  • Proponent
  • Shareholder
  • Resolution
  • Approve Coal Closure Dates
  • Vote
  • For
  • Rationale
  • N/A
  • Details
  • BlackRock supported this proposal because we believe the company, and its shareholders, would benefit from a continued focus on long-term strategic planning covering several decades. AGL’s 1.5-degree scenario analysis, aligned with the recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD), implies it is possible to close the coal-fired Loy Yang plant twelve years ahead of the current scheduled closure. The proposal, and our support of it, affords the AGL board and executives the discretion to manage that timing to ensure an effective and safe closure at the appropriate time.