APA Group shareholders reject call for climate safeguard report
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The news: The shareholders of gas pipeline and energy infrastructure business APA Group have rejected a call led by proxy adviser Market Forces to publish a report detailing whether capital investment plans align with stated climate commitments.
The climate risk safeguard resolution was overwhelmingly opposed by proxy votes but did not make it to a vote at the meeting as it was conditional on the passage of two enabling resolutions.
The numbers: The call for the climate report was opposed by 83.2% of proxy votes.
A call for APA to release a report detailing the “procedures and processes undertaken by APA to ensure its partners in the Beetaloo Sub-basin are compliant with the principles and standards outlined in APA’s ‘Supplier Code of Conduct’” also did not make it to a vote but was opposed by 89.18% of proxy votes.
The set of four resolutions were put forward by a group led by proxy advisory firm Market Forces that represented 0.0167% of security holders.
The two requests for a report were conditional on the passage of amendments to the APA Infrastructure Trust constitution that would enable security holders to express an opinion or request information in relation to material risks identified by directors. These were both opposed by 89.46% of votes.
The context: The resolutions had support from the New York City Pension Fund, California’s public sector fund CalPERS, Norwegian pension fund KLP and Norway’s largest asset manager Storebrand, according to the Financial Review.
In APA’s notice of annual meeting, the board of directors said they did not support the resolutions.
With regard to the two constitution amendments, the APA board said securityholders already have other ways to express opinions to the management of APA and that it could “disproportionately favour activist securityholders” rather than the broader base.
The climate risk safeguarding resolution was not supported by the board because it is believed “appropriate governance and disclosure arrangements are in place to consider and transparently report on future new gas infrastructure projects”.
The board did not support the partner due diligence request because the ‘supplier code of conduct’ does not apply to APA customers.
