This week, Whitehaven Coal, a major Australian coal producer, faces potential shareholder censure for its plans to increase coal production significantly.
At its annual general meeting (AGM) on Wednesday, the ASX-listed company could face a rare “second strike” vote if shareholders continue to oppose the executive remuneration report—a move which could initiate a board spill if support reaches 25% or more.
This opposition comes on the heels of last year’s AGM, where 41% voted against Whitehaven’s executive pay report.
Market Forces, a climate advocacy group, has been actively rallying shareholder support to vote against Whitehaven’s executive bonus plans, specifically the proposal to award CEO Paul Flynn a $7 million share bonus.
Market Forces argue that such incentives are “rewarding outdated and risky coal growth strategies,” which are inconsistent with global efforts to reduce fossil fuel dependency.
Whitehaven defends its remuneration policies and emissions strategy, arguing for a balanced approach to energy needs and economic stability despite shareholder pushback.Whitehaven has outlined aggressive coal production targets, with plans to increase thermal coal output by 40% over the next 20 years.
This includes proposed projects like the Blackwater South mine in Queensland, some of which are expected to operate for up to 90 years.
Market Forces warns that, if all of Whitehaven’s projects proceed, cumulative emissions could far exceed reductions achieved by Australia’s Safeguard Mechanism, which aims to curb industrial carbon emissions by 2030.
In response, Whitehaven defended its approach, stating its commitment to both short-term production goals and long-term project developments to offset mines nearing closure.
The company emphasized that “Net Zero emissions does not mean no emissions” and reiterated that offsetting is a legitimate component of its carbon management strategy, in alignment with Article 6 of the Paris Climate Agreement.
As shareholders prepare to cast their votes, the upcoming AGM could determine whether Whitehaven’s current board structure and expansion plans align with investor expectations amid mounting environmental scrutiny.