The board of Australian-listed resource companies Paladin Energy and Aquila Resources have rejected putting Australia’s first climate change shareholder resolutions to their annual meetings, arguing that carbon management is an issue for management and not shareholders.
In September, The Climate Advocacy Fund, a joint initiative of The Climate Institute and Australian Ethical Investment, announced plans to target Paladin and Aquila, alongside Woodside Petroleum and Oil Search, for failing to provide adequate information to shareholders about carbon footprints.
Oil Search has accepted the resolution, which will be put to its shareholders in May next year, while Woodside is taking legal advice on the resolution ahead of its April annual meeting.
The Climate Institute’s business director, Julian Poulter, said it was disappointing that Paladin and Aquila would not put the resolutions to their respective shareholders.
”These resolutions ask fundamental questions about emissions disclosure and it is remarkable that these boards, whose companies will be greatly exposed to carbon regulation, consider reporting to shareholders on their climate change strategies outside of shareholder business,” he said.
However, both companies have distributed to shareholders the statements proposing the resolutions.
Aquila said in a notice to shareholders that it was the board’s view that carbon disclosure ”under the company’s constitution and the Corporations Act 2001 is a matter for management rather than for shareholders.”
Mr Poulter said Paladin had gone further, saying that the proposed resolution actually impinged on the board’s authority to manage the company.
James Thier, Australian Ethical Investment director, said Oil Search should be acknowledged for putting the resolution to shareholders at its meeting.
”Oil Search’s response, together with other regulatory developments all over the world, put the Aquila and Paladin responses into context,” he said.
