Proxy adviser CGI Glass Lewis rebuked over attack on Woodside chairman
Energy analyst Saul Kavonic has hit out at proxy house CGI Glass Lewis, saying it has ‘lost objectivity and equity’ in its work.
A top energy analyst has criticised influential proxy adviser CGI Glass Lewis for its attack on Woodside Energy chair Richard Goyder over climate concerns, heightening tensions ahead of the looming annual general meeting.
Mr Goyder faces a battle to remain in the Woodside role, with Glass Lewis accusing him of disregarding shareholder concerns over climate, along with “oversight failings” while chairman of Qantas.
Glass Lewis last week recommended shareholders vote against Mr Goyder’s re-election at Woodside’s AGM on April 24 because of what it called a “dismissive” attitude to concerns about emissions and climate.
But energy analyst Saul Kavonic has hit back at the proxy house, saying it has “lost objectivity and equity” and was acting more like an anti-industry activist than a body representing client interests.
“There is legitimate debate to be had about the re-election of the Woodside chairman based on the recent lagging share price, driven in part by asset downgrades and unfavourably viewed merger talks. But the reasoning provided by Glass Lewis is incredulous,” said Mr Kavonic, an analyst with MST Marquee.
“Glass Lewis may need to commission an independent review of the objectivity of their work, to see if it is based on objective standards or is targeting companies based on activist pressure and media reports.”
A spokesman for top Woodside shareholder Allan Gray Australia on Friday said that while it was reasonable to hold companies to account regarding their climate stewardship, he failed to understand why Mr Goyder and Woodside were being targeted.
Glass Lewis referred to a report by the Australian Centre for Corporate Responsibility that Woodside under Mr Goyder had been “persistently unresponsive” to shareholder concerns about climate risk management and was pursuing a growth strategy not in shareholders’ interests.
While Woodside has been on the receiving end of strong protest votes at its annual meetings on climate grounds – for example, its 2021 climate report was adopted by just 51 per cent of shareholders – independent agencies such as Morningstar Sustainalytics rate the company’s performance as at worst a “medium” ESG risk rating.
Proxy adviser Institutional Shareholder Services backed the re-election of Mr Goyder to the board and said the debate over his tarnished record at Qantas should not extend to Woodside.
“The issues at Qantas have been addressed and Mr Goyder and other directors have accepted responsibility and accountability and taken appropriate steps, which does not pose any significant risk implication at Woodside,” ISS said.
However, it has recommended a vote against Woodside’s climate transition action plan, saying the climate transition action plan “does not appear to be sufficiently complete and rigorous”.
It noted Woodside has not adopted a commitment or plan but only an “aspiration” for net zero (scope 1&2) by 2050 or sooner, conditioned on several technological, abatement-related developments that may not occur. It also said the energy producer did not have any tangible plans to reduce its Scope 3 emissions.
“On the contrary, its business plan is to continue the production of oil and gas without near-term, meaningful development of lower carbon service,” ISS said.
Mr Goyder earlier this year brought his retirement as chairman of Qantas forward by a year following a series of controversies at the airline.