Cannon-Brookes rejects AGL Energy’s climate plan, demands faster exit from coal
The rejection of AGL’s climate action plan by its largest shareholder Grok Ventures illustrates the tension between Mike Cannon-Brookes’ change agenda and AGL’s mission of prioritising returns.
AGL Energy’s biggest shareholder, software billionaire Mike Cannon-Brookes, has applied pressure on the power giant to speed up its transition from coal power by voting against the company’s climate strategy.
Climate ambition remains a source of friction between AGL and Mr Cannon-Brookes, who is advocating for aggressive emissions reduction action and more investment in large-scale clean generation capacity that requires significant capital outlay.
Mr Cannon-Brookes’ private investment firm, Grok Ventures, on Friday confirmed it declined to support AGL’s updated Climate Transition Action Plan, arguing the blueprint still fell short of what was required to align the near 200-year-old company with global climate goals.
His 10.4 per cent stake in AGL is worth $639m.
“This year, Grok has again voted against the Climate Transition Action Plan which remains largely unchanged from what was released in 2022,” Grok said. “In our view, the plan shows only incremental improvement in ambition when compared with 2022, is not aligned with the Paris Agreement, and still targets net zero by 2050 on a stated 1.8-degree trajectory.”
However, Grok’s resistance was insufficient to down the AGL board’s vision; thirty per cent of shareholders rejected the climate plan which, while embarrassing, means it was still carried on the numbers.
AGL said it was pleased with the result after widespread engagement.
“AGL respects that there are a variety of perspectives on our Climate Transition Action Plan, which is not unexpected given the complexity of the energy transition. Our focus continues to be on the execution and delivery of our strategy of which we have made significant progress over the last three years,” the company said in a statement.
The public rebuke from AGL’s most influential shareholder underscores the growing tension between the board of Australia’s largest electricity generator and investors seeking a faster pivot to renewable energy. Grok used its clout to block a demerger in 2022 and push for deeper emissions cuts and faster deployment of wind, solar and battery storage.
Since then, Mr Cannon-Brookes’ enthusiasm for AGL activism has appeared to drift. The Atlassian co-founder (and sole CEO since a falling out with Scott Farquhar) has been trying to reimagine his privately owned Sun Cable renewable energy project which has sought outside capital. Sun Cable has also contemplated cutting back its vision of exporting power to Singapore via a 4200km subsea cable.
The separation of Mr Cannon-Brookes and his wife Annie has also paralysed Grok from participating in major bets while their considerable fortune is carved up. He also acquired a private jet.
AGL strengthened its decarbonisation targets earlier this year, bringing forward some emissions goals for 2030 while reaffirming its intention to close its last coal-fired power plant by 2035. But Grok argued the pace of change is too slow given the urgency of the energy transition and the demands of the National Electricity Market.
AGL is aiming for 12GW of renewables by 2035 and 6GW by 2029-30.
“AGL is uniquely positioned to help lead Australia’s energy transition and shareholders deserve to see a plan that demonstrates leadership and progression – particularly in accelerating renewable generation and battery storage capacity, which the energy market critically requires,” Grok said. “We firmly believe a more ambitious path to renewable energy best serves the long-term interests of AGL’s shareholders.”
The company remains the nation’s largest emitter, and has been under sustained social and political scrutiny to accelerate its transformation. While AGL has announced multibillion-dollar investment plans in renewables and firming technology, including a major battery at its Torrens Island site in South Australia, it is not moving fast enough in Mr Cannon-Brookes’ eyes.
Still, that investment was a major reason for AGL forecasting lower profits in the financial year ending June 30, 2026. Chairman Miles George urged shareholders to recognise the fundamental good health of the company.
AGL shares were down half a cent to $9.12.
Mr George told investors the step-down in profit was the unavoidable consequence of “significant ongoing investment to deliver our long-term strategy,” insisting the market needed to focus on cash flow and earnings before depreciation, not statutory profit.
But Grok remains unmoved. “We believe AGL can and should be at the forefront of Australia’s energy transition,” Grok said. “But that requires ambition and leadership that goes beyond incremental steps.”
The contrasting objectives of some AGL’s shareholders underscore the difficult path AGL is seeking to thread as it tries to keep all investors happy.
The clash also carries broader implications for Australia’s decarbonisation path. The federal government is relying on big generators such as AGL to deliver a steep ramp-up in renewable capacity to meet its target of 82 per cent clean energy by 2030, even as coal plants retire faster than expected.
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