Governance | Board and management oversight of AGL’s climate-related risks and opportunities. | AGL's 2022 Corporate Governance Statement describes the Board's oversight of risks and opportunities (including climate-related risks and opportunities), and management's role in assessing and managing such risks and opportunities.
During FY22, the AGL Board participated in an information session on Australian trends in climate change policy and investor sentiment, delivered by a Partner in Ernst & Young's Climate Change and Sustainability Services group.
The Remuneration Report within AGL’s FY22 Annual Report outlines AGL’s long term incentive plans, which from FY21 have included carbon transition metrics (for vesting from FY24). |
Strategy | Climate-related risks and opportunities over the short, medium and long term and their impact on AGL’s business, strategy, and financial planning; resilience of AGL’s strategy, taking into consideration different climate-related scenarios. | Section 2.3.2 of the FY22 Annual Report outlines AGL’s climate-related risks and identifies AGL’s opportunities to mitigate these risks. AGL’s FY21 TCFD Report "Accelerating Our Transition" provides further details of the physical climate-related risks facing AGL's business.
AGL’s decarbonisation pathway will continue to be reviewed as part of the review of strategic direction that is currently underway. In conjunction with this review, AGL will release updated scenario analysis of different decarbonisation pathways for the NEM, as well as AGL’s Climate Transition Action Plan, which shareholders will have the opportunity to vote on as part of the ‘Say on Climate’ resolution at AGL’s 2022 AGM. |
Risk Management | AGL’s processes for identifying, assessing and managing climate-related risks and how these are integrated into AGL’s overall risk management. | AGL's 2022 Corporate Governance Statement describes AGL's risk management framework, which is applicable to its assessment and management of climate-related risks.
In addition, Section 2.3.2 of AGL’s FY22 Annual Report outlines AGL’s climate-related risks.
AGL's FY21 TCFD Report "Accelerating Our Transition" also provides further details of the physical climate-related risks facing AGL's electricity generation business. |
Metrics and targets | The metrics used by AGL to assess climate-related risks and opportunities in line with its strategy and risk management process; the targets used by AGL to manage climate-related risks and opportunities and performance against targets. | Section 3.2.4 of AGL’s FY22 Annual Report includes AGL’s Scope 1 and 2 emissions and performance against key carbon transition metrics.
AGL’s FY22 ESG Data Centre includes additional climate-related data including Scope 3 emissions and additional emissions data breakdowns.
The Remuneration Report within AGL’s FY22 Annual Report outlines AGL’s long term incentive plans, which from FY21 have included carbon transition metrics (for vesting from FY24).
Closure timeframes for AGL’s coal generation assets are summarised in Section 3.2.4 of the FY22 Annual Report, alongside emission reduction targets for our electricity generation fleet.
AGL’s decarbonisation pathway will continue to be reviewed as part of the review of strategic direction that is currently underway. Following the release of the initial outcomes of this review, AGL will release AGL’s Climate Transition Action Plan, which shareholders will have the opportunity to vote on as part of the ‘Say on Climate’ resolution at AGL’s 2022 AGM. |
