14 May 2020
Caltex claims to support the Paris climate goals, but still has not set any targets to bring down its greenhouse gas emissions, or transition away from its fossil fuel operations.
The company today told shareholders it plans to continue investing in its oil refining business, which has no place in a Paris-aligned decarbonisation pathway.
When asked if the company would be setting Paris-aligned emission targets, Interim CEO Matthew Halliday could only commit to “give further consideration” to the issue.
In recent weeks, Woodside, Santos and Rio Tinto investors have demanded these companies set emission targets that extend to the use of their products.
Caltex’s failure to even commit to producing these targets in the future leaves it lagging and exposed to investor pressure on climate change.
Tell your super fund to ditch climate-wrecking fossil fuel companies like Caltex
Lytton oil refinery still “worth investing in”
Caltex owns and operates the Lytton oil refinery in Brisbane. Two years ago, former CEO Julian Segal made a perfect case for winding up this dirty fossil fuel asset: “If we were to put a target to reduce emissions by 50%, that would mean closing the refinery at Lytton.”
In response to low demand caused by the Covid-19 pandemic, the company has brought forward a planned maintenance shutdown at Lytton. Even before the pandemic, the ageing Lytton Refinery’s contribution to Caltex’s earnings had been declining for years.
However, the company today told shareholders it still believes it is worth investing in the Lytton refinery.
With recent analysis of the International Energy Agency’s grim demand projections suggesting 2019 was the global peak for fossil fuel demand, and Caltex’s own admission that the refinery is inconsistent with decarbonisation efforts, it’s little wonder shareholders hold concerns over Caltex’s plans to continue its dirty fossil fuel operations.