ESG Aus and NZ Update

Coca-Cola Amatil receives tens of millions in coal royalties in Queensland

There is currently a coal royalty dispute going on in Queensland between the Queensland government and mining giant Glencore, which has revealed a very quiet Coca-Cola Amatil investment in coal. In the 1980s Coca-Cola Amatil held sheep and cattle operations as part of its snack division. The land was sold in the late 1980s, however, the sub-strata and associated mineral rights belong to Coca-Cola Amatil still. The company has received about $80 million in coal royalties since 2014, recorded as ‘other revenue’ in its financial disclosures.

AMP Capital’s ethical option loses another mandate

ESSSuper, the emergency services personnel superannuation fund run by the government, has terminated its mandate with AMP Capital’s Ethical Leaders Balanced Fund investment option. The Ethical Leaders was the fund’s sole manager of the Ethically Minded investment option. A new manager is being sought. That makes three superannuation funds who have pulled their money from AMP Capital in months after controversy at the manager.

ANZ to turn back on business customers that refuse to plan for climate risk

ANZ has made an announcement regarding its intention to move away from business customers who do not have a climate change risk plan. A hundred customers with significant emissions have been asked to produce a low-carbon transition plan by 2021. Any customer unwilling to provide a plan will be exited. ANZ announced recently that it had reduced its lending to thermal coal miners by over half since 2015, and is soon to present a new fossil fuel policy.

BlackRock votes in favour of closing AGL coal power plants early

AGL was looking down the barrel of an investor revolt with over 20 per cent of the energy giant’s shareholders backing a resolution for the board to retire the Loy Yang A power plant (Vic) and the Bayswater station (NSW) to limit global warming by 1.5 degrees. The closure of the Loy Yang would be a full 12 years before the planned closure in 2048. BlackRock is one of AGL’s top shareholders, voting in favour, but it was not supported by the board and several other prominent AGL investors.

AGL is Australia’s largest carbon emitter - a whopping eight per cent of all national emissions.

Eight young people file to stop Whitehaven coal mine extension

A group of eight young people have filed an injunction in New South Wales to stop the Australian Government approval to extend Whitehaven’s Vickery coal mine. The group argue that the coal mine will harm young people by exacerbating climate change. The class action claims the Federal Environment Minister has a duty of care to protect young people and allowing the extension would violate that duty.

Whitehaven Coal has announced its intention to link environmental performance with its managing director’s remuneration package, with short-term incentive payments.