The AGL Energy Limited (ASX: AGL) share price is back in the green after tumbling 9% late last week after the release of its updated plan to back out of coal-fired power.
The company's decision to only knock a total of 5 years off the planned closure of its two major coal-fired power stations seemingly disappointed the market.
The Australasian Centre for Corporate Responsibility (ACCR) didn't sit quietly after the energy producer and retailer's release.
"AGL proves its incompetence time and again by continuing to ignore the majority of its shareholders with its failure to align the closure of its coal-fired power stations with the Paris Agreement," said its director of climate and environment, Dan Gocher.
Let's take a closer look at the backlash to Australia's biggest carbon emitter's latest deadline on coal.
Image source: Getty Images
AGL's updated coal closure plan not enough: ACCR
Within its half year results, released on Thursday, AGL announced its planning to close its Baywater and Loy Yang coal-fired power stations by 2033 and 2045.
That will see doors close at the respective stations 2 and 3 years earlier than previously planned.
However, Gocher believes that flies in the face of the 53% of shareholders who voted to implement goals and targets in line with the Paris Agreement last year.
AGL's coal-fired power stations will be held by Accel Energy after the company splits into Accel Energy and AGL Australia. The demerger is expected to occur before the end of this financial year.
The company stated the new closure dates will see Accel Energy's electricity generation assets' emissions cut by an additional 90 million tonnes between financial year 2023 and financial year 2050.
However, Gocher said the change is "next to meaningless for these crumbling assets":
AGL is facing increasing sustaining capital expenditure on its coal-fired power stations (up $17 million to $162 million), while it steadfastly refuses to invest in the transition, with growth and transformation capital expenditure declining (down $18 million to $62 million).
Gocher also stated that by "desperately clinging on to coal", the company is ignoring the changing energy landscape.
"Shareholders must be questioning the competence of the board and the executive to manage the transition effectively," said Gocher.
Gocher also claims AGL's board has failed to appoint directors with needed skills to manage the energy transition.
He called on shareholders to "seek change at the highest level" if the company's demerger goes to vote without Paris-aligned targets.
AGL share price snapshot
While the AGL share price is well and truly in the long-term red, it's recording a decent gain for 2022 so far.
Right now, the company's stock is up 12% year-to-date. For context, the S&P/ASX 200 Index (ASX: XJO) has slid 4% in the same time frame.
However, over the last 12 months, the AGL share price has tumbled 34%. It's also down 71% over the last 5 years.
