RIYADH: Australian petroleum exploration and production firm Woodside Petroleum Ltd. has received criticism over its emission reduction plans, Bloomberg reported.
As a result of this, the firm might face potential investor backlash for being presumably behind in terms of climate strategy.
American proxy adviser services company Glass, Lewis & Co. has suggested that Woodside directly address the Scope 3 emissions from the use of its products. The adviser also recommended that shareholders vote against Woodside’s inaugural climate report.
Another American proxy adviser, Institutional Shareholder Services Inc., which has suggested backing the report; however, also voiced concerns over the absence of quantified Scope 3 targets in the report.
Australia’s largest natural gas exporter is targeting to achieve net zero by 2050. However, the firm is still exploring new investments even though the International Energy Agency has cautioned that new fields should not be developed, in order to be able to achieve net-zero goals on time.
“Shareholders should be afforded disclosure that allows them to understand and assess a company’s environmental and social risks. We have concerns regarding the Company’s Scope 3 emissions disclosure, its use of carbon offsets, its capital allocation disclosure, and its responsiveness to shareholders,” Bloomberg reported, citing Glass Lewis.
