Aware Super, HESTA join forces against Woodside

Aware Super and HESTA have voted against the re-election of Woodside director Ann Pickard, who also chairs the Energy Board's Sustainability Committee, with HESTA also voting against the broader remuneration plan.

The super funds said the gas giant has failed to meet expectations on climate action and a transition to net-zero.

"We believe the steps taken by Woodside so far fall short of what is needed to position it for the global transition to a low-carbon future and the company needs to do more to materially address the concerns voiced by investors," HESTA head of portfolio management Jeff Brunton said.

Aware Super said the company still needs to adequately address the super fund's concerns in relation to resilience to transition risks, the lack of an ambitious Scope 3 GHG emissions abatement target, and its governance around climate risk.

"As we've previously communicated to Woodside Energy, our decision is underpinned by our belief that climate change is one of the most significant financial risks to our portfolio over the long term," an Aware Super spokesperson said.

"Aware Super has been actively engaging with Woodside Energy regarding concerns about its climate strategy and disclosure. While there has been some progress in certain areas, we believe the company still falls short of the standards we expect on behalf of our 1.2 million members and poses a risk to their financial futures."

Brunton said HESTA chose to vote against the remuneration plan as the fund felt the remuneration outcomes were high relative to shareholder experience, together with concerns around the company's climate strategy and safety outcomes.

"Woodside remains on our watchlist as we push for stronger climate action designed to safeguard long-term shareholder value," Brunton said.

"We remain concerned that Woodside has no formalised net zero target, that its scope 3 target lacks ambition, and that current decarbonisation plans are too reliant on offsets. Looking forward, the company's decarbonisation pathway post 2030 appears unclear, and we urge Woodside to provide greater clarity, including on the impact of future projects.

"In our view, these unaddressed issues continue to present material financial risks, and we will continue to engage with Woodside in the best financial interests of our members."