media release
28 March 2023
Attributable to Kim Farrant – General Manager, Responsible Investment
HESTA welcomes the progress AGL has made with its Climate Transition Action Plan (CTAP), which demonstrates progress towards alignment with the goals of the Paris Agreement, and supports the recent appointment of Damien Nicks as CEO.
We currently believe the approach AGL and its management team have outlined to shareholders more appropriately balances risks, returns and decarbonisation. Reflecting this progress by AGL, HESTA has removed AGL from its “watchlist” at this time.
Whilst we view this shift in AGL’s strategy as positive we continue to believe that there is additional scope for AGL to continue to develop its decarbonisation ambitions in alignment with the 1.5°C pathway including bringing forward coal-fired power generation closure dates through effective strategy execution and growing investment in renewables and storage.
It’s important key emitters like AGL support a timely, equitable and orderly transition. The commitments made in AGL’s CTAP around supporting their workforce and impacted communities are encouraging but more detail is needed.
HESTA remains the lead investor through Climate Action 100+ and will continue to engage with AGL on how the company plans to support a 1.5°C pathway, while providing comprehensive support for its workers and impacted communities.
Ends.