Apr 28, 2011 - 10:30am
The board of Oil Search has agreed to adopt a carbon pollution reduction target this year, following engagement from the Climate Advocacy Fund*, Australian Ethical Investment and The Climate Institute said today.
“This is excellent news for Oil Search shareholders and demonstrates that the company is taking seriously the importance of managing and reporting climate change risk,” said Julian Poulter The Climate Institute’s Business Director.
“Oil Search has responded to the shareholder resolution by drawing up strategies to ensure it will become competitive in a low carbon economy.”
The Climate Advocacy Fund has withdrawn a shareholder resolution which was to be tabled at Oil Search’s AGM in May after the company announced new plans to manage its carbon risk.
In its 2010 Sustainability Report, Oil Search stated that it will publish details of the emissions reduction targets it adopts in its 2011 Sustainability Report.
Australian Ethical Investment, Executive Director James Their, said: “We commend Oil Search for responding to the issues we raised in a positive way. The Climate Advocacy Fund has again proved its value to the shareholding community at large by engaging positively with some of the high emitters listed on the Australian Securities Exchange.”
“Through their positive engagement with the Climate Advocacy Fund, Oil Search is showing that they take the climate change concerns of their shareholders seriously and are prepared to act to protect shareholder value by having an emission reduction strategy. This is a strong lead for other Australian companies to follow.”
For 2010/11 the Climate Advocacy Fund proposed resolutions to four companies requesting disclosure of carbon emissions, strategies to reduce emissions and also capital investment assumptions around future carbon prices and their impact on long-term investment decisions.
Three companies, Aquila Resources, Paladin Energy and now Oil Search, have moved to report emissions/adopt a reduction target following engagement with The Climate Advocacy Fund.
The fourth company, Woodside Petroleum declined to table the Climate Advocacy Fund’s first, preferred shareholder resolution asking it to disclose its carbon price assumptions – the alternative resolution was defeated at its AGM.
*The Climate Advocacy Fund is a passively managed ‘index’ investment fund open to Australian investors and is managed by Australian Ethical Investment and supported by The Climate Institute.
For further information:
Harriet Binet | Communications Director, The Climate Institute |