Woodside avoids first strike amid climate protests
Amid a strong police presence at Woodside’s AGM, former federal resources minister Ian Macfarlane suffered a major protest vote.
Former federal resources minister Ian Macfarlane has suffered a major protest vote against his re-election to the board of Woodside Energy amid ongoing pressure on the company from environmental groups.
The company also narrowly avoided receiving a first strike against its remuneration report, with almost 21 per cent of shares ahead of Friday’s annual general meeting in Perth lodged in opposition.
The meeting was notable for the strong police presence, with a number of climate groups holding protests outside the event. The meeting’s question and answer session was also dominated by questions around climate, with many of those asked by proxy holders rather than investors.
Mr Macfarlane, who has sat on the Woodside board for more than six years, recorded an almost 35 per cent no vote against his re-election.
The former minister had been targeted by investors concerned about the company’s climate strategy, following on from the 49 per cent no vote directed against Woodside’s climate report at last year’s meeting.
Speaking to reporters after the meeting, Woodside chief executive Meg O’Neill said shareholder attendance at the AGM had fallen in recent years as a result of the persistent “hijacking” of the event by environmental groups.
“Ten years ago, we had a lot more attendance from our retail shareholders who really enjoyed the opportunity to come and have an interaction with management and have a cup of tea and a snack with us. Many of our shareholders who depend on our dividend or value or dividend as part of their retirements, they’ve been intimidated by these activists who are trying to hijack the meeting,” she said.
“It‘s quite frustrating actually, because we’d like to be able to really engage with the thousands of mums and dads who hold our shares and want to learn more about the company and have that interaction.”
During the meeting, Ms O’Neill and chairman Richard Goyder agreed to meet with representatives of Greenpeace to further discuss the company’s climate approach.
Ms O’Neill said the company would continue to advocate for the role of gas could play in helping the world to reduce its carbon emissions.
“We know that shareholders have questions and concerns around our approach to climate change, and there‘s extensive engagement and interactions that we have over the course of the year to understand those concerns and to respond,” she said.
“We’ve been increasingly vocal and clear both in speeches that we’ve delivered as well as things like the climate report on how we see the world evolving and the role of gas in a decarbonising world and we continue to hold those beliefs quite strongly.”
Influential proxy adviser CGI Glass Lewis had recommended shareholders vote against both the company’s pay report and the reappointment of Mr Macfarlane in the lead-up to the meeting.
While Mr Macfarlane retained his board position, environmental groups said the scale of the protest vote was unprecedented and sent a clear message to the Woodside board.
Alex Hillman, the lead analyst at the Australasian Centre for Corporate Responsibility, noted that before Friday no Woodside director had ever received less than 95 per cent support.
“Chair Richard Goyder must reflect on this result and the substantive strategic shift required to regain investors’ confidence,” Mr Hillman said.
“This board’s culture of ignoring material shareholder votes must end.”
Will van de Pol, the acting executive director of Market Forces, said the vote results showed that a growing number of investors believed Woodside’s growth strategy was untenable.
“The extraordinary low vote for Ian Macfarlane sends a clear message that directors risk losing their positions if their company fails to take real climate action,” he said.
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