Push to remove chair Richard Goyder as energy giant faces investor climate heat

While CGI Glass Lewis noted an improvement in Woodside’s responsiveness to shareholders’ concerns this year when it provided a progress report on its emissions efforts, it said it still found it to be “underwhelming” with “significant room for improvement”.

“Ultimately, we believe that the company’s continuous failure to provide adequate disclosure that offers a clear line of sight into its shareholder feedback and its response thereto warrants opposition to this proposal,” it said.

Richard Goyder is also preparing to step down at Qantas.Credit: Eamon Gallagher

Goyder, one of Australia’s most prominent business leaders, is preparing to step down as chairman of Qantas this year, but is running for re-election at Woodside’s coming annual general meeting.

The Australasian Centre for Corporate Responsibilitiy (ACCR), a shareholder activism group, has filed a members’ statement opposing Goyder’s re-election, claiming he has been “persistently unresponsive” to concerns about climate risk.

“The chair carries ultimate responsibility for the company’s direction, and therefore it is the chair who must be held accountable for Woodside’s current approach,” it said in the statement.

Woodside on Thursday responded to CGI Glass Lewis’s report, describing Goyder as a highly capable and effective leader who continues to provide “valuable insight, stewardship and strength to the board … as a result of his extensive business career and board experience”.

“Mr Goyder and the senior leadership team have held numerous direct engagements with a broad range of shareholders on climate strategy and governance,” a Woodside spokesperson said.

“We have listened carefully to our investors, who have asked for more detailed information about our climate action plans, which we have provided in our Climate Transition Action Plan and 2023 progress report.”

Woodside’s updated climate plan marked a “material step forward” from earlier disclosures, the spokesperson added, by acknowledging and responding to investor feedback and articulating plans to curb emissions and invest in the energy transition.

Woodside said its climate report pointed to 17 specific areas of investor feedback and referenced pages where each had been addressed. “This does not appear to have been included in the CGI Glass Lewis analysis, and we look forward to discussing this further with them,” the spokesperson said.

Woodside will hold its annual general meeting later this month.Credit: Getty

While CGI Glass Lewis said it had observed an improvement in his acknowledgement of shareholders’ climate concerns this year, it said the chairman should be held accountable for a “track record of dismissing shareholder opposition and ongoing lack of sufficient disclosure”.

“Therefore, we recommend that shareholders oppose Mr Goyder’s re-election,” it said.

Following a series of reputational issues at Qantas, including the carrier selling tickets for cancelled flights, the report added, shareholders may find Goyder’s accountability for oversight failings relevant in assessing his suitability to remain as the chair of Woodside.

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