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2 Jul, 20 tweets, 8 min read
Here’s a business case study for our times.
@AGLAustralia is a huge Australian company with a massive problem. AGL is Australia’s worst climate polluter. Investors are recoiling. The share price is tanking. But there is a solution. Here’s a thread: #auspol #ClimateAction
In the mid-2010s, AGL’s CEO Andy Vesey had a plan: AGL would respond to rapidly changing business conditions, by transitioning away from generating electricity from burning dirty coal and would embrace renewable energy.
AGL made a positive start on Vesey’s plan by announcing the closure of the ageing dirty polluting Liddell coal burning power station. But this brought a backlash from the coal lobby and coal-friendly politicians who attacked the move.
Vesey and his future focus did not last. His resignation came amidst pressure from pro-coal politicians and lobbyists on AGL. Under new CEO Brett Redman, AGL made the unwise decision to double-down on dead-end coal. abc.net.au/news/2018-08-2…
Between 2016 and 2021 AGL increased the amount of electricity generated from renewable energy by a total of around 1% or less than 0.2% per year. At the same time, AGL spent up big on marketing its supposedly green credentials.
Fast forward to 2020. AGL’s fortunes were in steep decline with a 22% fall in underlying full-year profit and a gloomy outlook for 2021. Then CEO Brett Redman noted the ‘considerable uncertainty’ of the company’s operations.
smh.com.au/business/compa…
In February 2021, AGL’s share price hit a record 52-week low, with underlying profit dropping 27% after the company posted a $2.27 billion bottom-line loss. Brett Redman suggested a business model restructure could be on the cards: afr.com/companies/ener…
Also in February it was revealed that AGL was Australia’s worst violator of environmental regulations for coal burning power stations and had the highest number of power failures:
smh.com.au/environment/cl…
In late March 2021 AGL proposed a demerger to separate its coal-burning power stations from the retail arm. Investors were unimpressed. It was a clear attempt to spin AGL’s way out of trouble rather than deal with the company’s issues.
afr.com/policy/energy-…
Investor concern increased when less than a month later, AGL’s CEO Brett Redman abruptly resigned, effective immediately. This sort of boardroom turmoil is a clear sign of a company in trouble. smh.com.au/business/compa…
Some time in early May (presumably amidst the ensuing chaos) someone inside AGL decided to sue @GreenpeaceAP for parodying the company’s logo. theguardian.com/australia-news…
Michael Bradley of @marquelawyers publicly reviewed AGL’s legal case against Greenpeace as follows: “Does AGL have a case? Nah, they’re pushing shit uphill, to use a legal phrase”. crikey.com.au/2021/05/13/gre…
A group of leading environmental and human rights charities condemned AGL’s legal action as an attack on civil society and a direct affront to free speech. Privately, leading business figures wondered what on earth AGL thought they were doing: probonoaustralia.com.au/news/2021/05/e…
@AGLAustralia overwhelmingly lost its case - but did succeed in generating enormous and global publicity about its status as Australia’s worst climate polluter. Presumably this had not been AGL’s intention in bringing the action: news.com.au/finance/busine…
Many of the articles about the case clearly highlighted AGL’s appalling contribution to the climate crisis in Australia, falling profits, ‘greenwashed’ marketing image and the need for a change.
abc.net.au/news/2021-05-0…
Many observers also noted that AGL seemed more concerned about image than reality. @mcannonbrookes tweeted that it was “quite amusing that AGL isn’t disputing the facts…it’s disputing the use of its logo. Good to see the order of their priorities”:
AGL’s loser of a court case has now been followed by a clunker of a demerger plan. Announced this week, AGL’s plan was met with ‘a humiliating reception’. Investors recoiled, resulting in another 10% loss in market value: afr.com/companies/ener…
AGL Chair Peter Botten has openly admitted that AGL’s leadership failed to anticipate changes in the energy market. Botten has also acknowledged that the company is at a true ‘inflection point’: reneweconomy.com.au/inflection-poi…
AGL currently operates 3 coal burning power stations. Australia must phase out coal entirely by 2030 to ‘do its bit’ to meet the internationally agreed goal to limit global temperature rise to 1.5°c. AGL’s core business is at a moral and economic dead end climateanalytics.org/media/australi…
No more bad court cases, greenwashing or corporate fixes. The only decent strategy for AGL is to go with the flow of technology, science, politics, economics & public opinion and commit to closing all coal burning power stations by 2030 & become a renewable energy champion.

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More from @David_Ritter

David Ritter Profile picture
24 Jun
Hey @ScottMorrison this week your ministers said they were “stunned” & “blindsided” by UNESCO saying that the #GreatBarrierReef should be listed as in danger. Why? Here's a sample of 15 expert warnings in the last 5 years about the mortal threat to the Reef from #climatechange.
In early 2016, the first of recent mass bleaching events occurred in the Great Barrier Reef. Scientists estimated 22% of coral was killed, clearly linked this to climate change and noted the need for urgent action to counter impacts. nature.com/articles/d4158…
Also in 2016, the UN released a major report on climate change with a key chapter focussing on the Great Barrier Reef. (You might remember that the government intervened prior to its release, objecting that the information would harm tourism).
theguardian.com/environment/20…
Read 17 tweets
David Ritter Profile picture
4 May
A few quick facts about @AGLAustralia which is Australia's biggest domestic greenhouse gas polluter:
In 2019-2020 @AGLAustralia was responsible for over 42 million tonnes of greenhouse gas emissions - more than double the next worst.
A massive 8% of Australia’s total domestic emissions are produced by @AGLAustralia alone.
Read 8 tweets
David Ritter Profile picture
7 Mar
As a candidate for general secretary of the @OECD Mathias Cormann deserves to be judged on his record. So, for ease of reference, here is a thread setting out some of Mr Cormann’s record of using his position of power to thwart effective action on climate change:
Back in 2009, when the Liberals were in opposition, Mr Cormann opposed any support for a national emissions trading scheme in the absence of a global agreement: abc.net.au/4corners/malco…
In 2011, again from opposition, Mr Cormann claimed to parliament that the Gillard government's “push to put a price on carbon on the basis that it would help reduce global greenhouse gas emissions [was] a very expensive hoax": bit.ly/2MVsIVn
Read 13 tweets
David Ritter Profile picture
31 Jan 20
This week at the #NationalPressClub, Australia’s Prime Minister @ScottMorrisonMP outlined his new vision for the nation in the face of catastrophic fires.

Let’s call it the ‘Shonk Doctrine’.

Here’s a thread on the ‘Shonk Doctrine’ and how it works.

#auspol #shonkdoctrine
Morrison’s Shonk Doctrine combines elements of what @NaomiAKlein called ‘Shock Doctrine’ with a whole lot of our Prime Minister’s characteristic shonkiness.

It is a dangerous combination.
Naomi Klein coined the expression ‘Shock Doctrine’ to describe the phenomenon of vested interests using moments of ‘shock’ (eg wars & disasters) to force through aggressive neoliberal policies targeting ordinary people and the public domain:

theguardian.com/books/2007/sep…
Read 16 tweets
David Ritter Profile picture
14 Jan 20
1/12. The #Australianfires have been an absolute disaster for wildlife and nature. But there is an important background story: even before the fires, the Coalition government had declared War on Nature.

Here’s a thread:
2/12. The Coalition government’s #WarOnNature has been prosecuted through funding cuts, attempted law changes, support for disastrous projects and attacks on environmental defenders.

Here are 7 examples:
3/12. In December 2013, the newly elected federal Coalition government slashed $10 million in funding from the public-interest Environmental Defenders Offices.

@EDOLawyers

abc.net.au/news/2013-12-1…
Read 12 tweets
David Ritter Profile picture
5 Jan 20
There are various different kinds of negligence and failure for which Australia’s political leaders should be held accountable in relation to the #bushfirecrisis. Here’s a thread.

#AustraliaFires #AustraliaBurns
1. Despite at least 18 warnings since 2013 (and plenty before that) linking rising emissions to catastrophic fire risks, no serious action has been taken to reduce Australia’s emissions. We are literally the worst on climate policy: google.com.au/amp/s/amp.theg…
2. Specific expert warnings about the fire risks for the 2019-2020 summer and recommendations for better preparations were all ignored, as were requests for further meetings by experts: google.com.au/amp/amp.abc.ne…
Read 11 tweets

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