From Market Forces
Market Forces has filed a resolution on behalf of 128 APA Group shareholders calling on the company to disclose how it is managing the emissions from new gas infrastructure, including planned Beetaloo basin pipelines, in line with its climate commitments.
It is the first time ever in Australia a resolution has been lodged at an oil or gas pipeline company, holding it to account on climate disclosure.
There are growing concerns from investors, shareholders and Traditional Owners that APA Group's involvement in fracking of the Beetaloo sub-basin is posing significant financial and climate risks to the company.
“APA Group must come clean with its shareholders and be fully transparent about whether these pipelines are compatible with the company’s climate goals,” said Rachel Deans, Oil and Gas Campaigner, Market Forces.
General Practitioner and APA shareholder Dr Clare Smith, who has joined the resolution said:
“I’m very concerned about the mental health of young people caused by projects like the Beetaloo gas pipeline and by the company’s lack of commitment to a safer future we all need. I want my grandchildren to know I behaved as responsibly as I could. I want everyone to do the same, including APA.”
APA Group has signed initial agreements with Tamboran Resources and Empire Energy to build small-scale pipelines. APA Group is also in discussions regarding the construction of large-scale pipelines for both Tamboran and Empire, completely misaligned with the company’s commitment to the climate goals of the Paris Agreement.
In 2022, more than 20 percent of APA Group shareholders voted against the company’s Climate Transition Plan, with investors voicing concerns over reliance on carbon offsets.
Investors are concerned APA Group is relying on unproven carbon offsets in order to steam ahead with building large scale pipelines connecting Empire Energy and Tamboran Resources fracking wells to interstate and overseas shipping terminals.
All 36,300 tonnes of carbon offsets retired by APA in FY22 and FY23 failed to achieve their stated purpose of increasing forest cover growth and represented no genuine abatement, according to Peer-reviewed academic research.
Annual domestic emissions from fracking in the Beetaloo Basin and processing the gas at Middle Arm would produce up to 49 million tonnes of carbon dioxide equivalent (CO2-e) per year, adding 11 per cent to Australia’s current annual emissions, according to analysis by Climate Analytics. Including end-user consumption of the gas, emissions are estimated to total 2.3 billion tonnes of CO2-e over 25 years.
University sector superannuation fund UniSuper is APA Group’s largest shareholder, holding more than nine per cent of the company’s shares.
In May 2023, 96 leading Australian Scientists and Experts, most of which are UniSuper members, called for the Northern Territory Government to ban unconventional gas development due to its impact on the climate. Fracking has been banned in other states including Victoria, Tasmania and most of Western Australia.
“A growing number of UniSuper members and leading academics are calling on their fund to vote in favour of this resolution holding APA Group to account on its climate commitments,” said Rachel Deans.
