While noting an improvement in Goyder’s acknowledgment of investors’ climate concerns, CGI Glass Lewis said he should still be held accountable for a “track record of dismissing shareholder opposition and an ongoing lack of sufficient disclosure”. It also pointed to the damage to Qantas’ reputation under Goyder’s watch, including the unlawful sacking of 1700 ground crew in 2020 and the launch of legal action alleging the carrier had been selling tickets to flights it had cancelled during 2022.

ISS, in its main report, backs Goyder’s re-election for another term, on the basis that the board was responding to climate concerns, and that it had committed to submitting its climate strategy to investors for approval every three years.

However, separate advice issued to ISS clients seeking a greater sustainability focus applied to their voting decisions concluded that a vote against Goyder was warranted because Woodside was not aligned with investor expectations on committing to net-zero emissions.

A third proxy adviser, Ownership Matters, recommends endorsing Goyder’s re-election and Woodside’s climate plan. It said Woodside had supplied investors with enough information to form a judgment about how it was seeking to manage climate risk, as well as why it believed expanding gas production was consistent with global climate targets.

Woodside is hoping investors will re-elect Goyder. It describes him as a highly capable and effective leader who provides “valuable insight, stewardship and strength to the board”. The company is pitching its updated climate plan as a “material step forward” from earlier disclosures that articulate its strategy to reduce emissions and invest in the energy transition.

As Australia’s biggest producer of liquefied natural gas, Woodside says greater supplies of the fuel will be needed to meet ongoing energy demand in Asia and to achieve global decarbonisation targets by enabling a greater uptake of clean energy. Woodside says that LNG, which has half the typical life-cycle emissions of coal, can displace coal-fired power by providing the back-up for renewables when wind and solar generation are low.

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However, LNG is also a leading source of emissions including carbon dioxide and methane, which scientists say must be urgently reduced to avoid the worst impacts of global warming.

A growing number of investors are increasingly asking questions about the outlook for gas and the risks associated with developing new gas fields in a world that is getting serious about averting catastrophic climate change and phasing out the consumption of all fossil fuels.

The $81 billion superannuation fund HESTA, which owns Woodside shares, has asked the company to consider appointing new independent director nominees with skills related to the energy transition and business transformation.

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