AGL to link pay to carbon cuts
AGL will be the first top 50 company to link executive pay to carbon reduction, as it commits to being carbon neutral by 2025.
AGL will be the first top 50 company to link executive pay to carbon reduction as part of a new climate action statement launched on Tuesday.
The policy will commit the company to be carbon net neutral by 2050 through a number of initiatives including offering customers the choice of carbon neutral gas and electricity.
The company is the single biggest emitter in the top 50 companies, accounting for 18.7 per cent of all top 50 company carbon emissions.
It is committed to closing its coal-fired electricity plants, starting with Liddell in 2023 and Bayswater in 2035.
Executives including chief Brett Redman will have long-term pay incentives linked to carbon reduction targets/ These targets will determine one third of incentives.
Another third will be linked to returns on capital targets, and a third on total shareholder returns.
AGL launched its new carbon neutral option for gas and electricity customers, who pay an extra $1 on their bill.
AGL will offset carbon emissions in electricity by investing in a range of offset projects.
In his climate action statement, Mr Redman said: “We believe that Australia’s energy future will be affordable and smart – delivered from renewable sources that are backed by flexible energy storage technologies which come together to power our homes, businesses and vehicles.
“We know that today’s operating landscape will not be tomorrow’s. And we know that as Australia’s largest greenhouse gas emitter we must continue to evolve, innovate and adapt in order to continue to serve millions of Australian households and businesses.”
Mr Redman added: “Electricity from renewable sources, backed by flexible energy storage technologies, will power our homes, businesses and vehicles. Energy will be both affordable and smart, and greenhouse gas emissions will be much lower, helping us to tackle climate
change.
“At AGL, we accept the climate science behind this vision. By 2050, we believe that Australia has the opportunity to be carbon neutral and an energy superpower. We will play our part in achieving this and target reaching net zero emissions by 2050.
“This will be realised by Australia generating low-cost power using zero-emissions wind and solar resources, backed up by technologies like batteries, hydro power and, for much of this transition, gas.
“We believe this will underpin the competitiveness of the Australian economy just as cheap fossil fuels did in the 20th century.”
AGL’s commitment includes carbon neutral prices, helping to develop voluntary carbon markets, transitioning its energy sources to renewables, continuing to invest in new sources of supply, and being transparent.