British Legal & General Investment Management fund to vote against Woodside Energy chair Richard Goyder

A large British investment fund has pledged to vote Richard Goyder off the board of Woodside Energy, as the company he chairs fights off climate criticism.

Mr Goyder has been under pressure ahead of the Perth oil and gas business’s annual meeting later this month after proxy firm CGI Glass Lewis advised against his re-election.

The businessman was also keelhauled for his supervision of airline Qantas, which came under severe scrutiny in 2023.

Legal & General Investment Management will vote against Mr Goyder’s re-election and Woodside’s climate plan.

The London firm claims about $US1.5 trillion ($2.3tn) of assets under management. But it ranks as the 55th largest holder of Woodside, according to Bloomberg data, with less than 0.1 per cent of shares on issue.

In a blog post, LGIM said the vote against Mr Goyder was in line with its Climate Impact Pledge.

“We vote against the re-election of the chair of the board at companies lagging our minimum expectations on climate change,” the blog post said.

The fund voted against the re-election of Woodside director Ian Macfarlane at the annual meeting in 2023. Mr Macfarlane — a former federal resources minister — copped a 34.7 per cent no ballot.

Woodside has also endured recent tight polls on its climate plan.

“We note that no material changes have been incorporated in their most recent climate transition plan, which we view as insufficiently robust, both in terms of disclosure and climate-related targets,” the fund said.

LGIM called for more capital to be allocated to Woodside’s low carbon projects.

The ASX20 business has pledged $US5 billion for green investment by 2030 but has hit roadblocks for some key projects. Green hydrogen in particular has so far struggled to reach commercially viability.

Work on the giant Scarborough natural gas project off Western Australia’s coast is nonetheless under way, drawing fire from environmentalists.

On Tuesday, Mr Goyder wrote to shareholders defending his record.

“We are concerned that some stakeholders’ and investors’ requests to drastically change Woodside’s strategy and investment priorities risk eroding value for all shareholders and contributing to a disorderly energy transition,” he said.

“The energy transition will take time and significant investment, and I am confident that Woodside’s disciplined approach is the right path for our shareholders.”

The Australian Council of Superannuation Investors and super fund HESTA both backed Mr Goyder, but want more climate action.

The Australian Shareholders Association last week said Mr Goyder “has been good for Woodside”.

But the Australian Centre for Corporate Responsibility will vote against Mr Goyder. Executive director Brynn O’Brien said Woodside had been determined to bet shareholder money against the energy transition.

Woodside shares fell 1.2 per cent on Wednesday to close at $29.58.