“The Paris agreement is an agreement between countries, not an agreement that binds companies,” Hunt said after the annual shareholder meeting in Sydney, dominated by questions about AGL`s issue performance and its controversial proposed LNG import to Victoria. Dan Gocher, the centre`s climate and environment director, said the closure of coal-fired power plants “on their dates of use” was not in line with the Paris climate change agreement, “with which the AGL says it is compliant.” Liza McDonald, head of the responsible investment department at First State Super, which owns about 1% of AGL, welcomed the move to link compensation to climate-related goals. The country`s most serious polluter, L`AGL, will link executive salaries to climate targets such as investments in more renewable energy and the sale of “carbon-neutral” electricity plans, but has no plans to advance the closure of coal-fired power plants. AGL Energy has resolutely disbanded any obligation to align its emissions with the Paris climate targets, with President Graeme Hunt cutting a strong 30% of shareholder vote in favour of a resolution to force the supplier to shut down coal-fired electricity by 2030. “While we are actively discussing with the federal government and others how to implement the Big Stick legislation, my mind is much more focused on how things are built and how things are built,” he said. AGL operates the Loy Yang A coal-fired power plant in the Latrobe Valley in Victoria.Credit:Justin McManus . In a briefing to Reporter, Redman said AGL would link one-third of the company`s longer-term incentive wage system for about 50 executives to emissions reductions and the sale of carbon-neutral energy. But a climate campaign group, the Australasian Center for Corporate Responsibility, told the AGL that details would be announced at the company`s general meeting in September, Redman said. He estimated that AGL was the first ASX company in the top 50 to link compensation to emission reductions. “While the AGL`s intention to reward executives for reducing emissions is welcome and is in line with ACCR`s requirements of other heavy polluters, executives should not be rewarded for business as usual.” To use this site, cookies must be enabled in your browser. To activate cookies, follow the instructions for your browser below.
Redman said the new climate statement would not change the company`s previous plans for the withdrawal of its three main coal-fired power plants, meaning the Loy Yang power plant in Victoria`s Latrobe Valley would burn coal for 28 years.