Home > Woodside pushing ahead with Trion oil field, another project out of line with Paris climate goals

Woodside pushing ahead with Trion oil field, another project out of line with Paris climate goals

20 June 2023

20 June 2023

Climate wrecking oil and gas company Woodside has today made the decision to proceed with a new offshore oil field, once again demonstrating a complete disregard for investor demands to align with global climate goals.

Woodside today made the final investment decision (FID) on Trion, a massive new oil field it plans to develop in the Gulf of Mexico. Burning the oil contained in the Trion field would release 200 million tonnes of carbon dioxide,* equivalent to nearly half of Australia’s total annual emissions.

Woodside’s climate wrecking oil and gas expansion plans, including the Trion oil field, are enabled by ANZ, NAB and Westpac, as well as almost every super fund in Australia. Take action now by demanding that your super fund ditch its shares in Woodside.

Woodside’s decision to proceed with the Trion development flies in the face of the International Energy Agency’s warning that no new oil fields should be developed beyond those approved as of 2021 if the world is to have a chance of limiting global warming to 1.5°C.

This decision comes after significant investor backlash against Woodside’s climate strategy over the past two years, with 49% of investors voting against Woodside’s dodgy plan in 2022 and 35% of investors protesting the reelection of company director Ian Macfarlane this year. Yet in the face of climate science and significant investor dissent, Woodside is pushing ahead with yet another project out of line with the Paris climate goals and a safe climate future.

Take action

Demand your super fund sell its shares in Woodside.

"*" indicates required fields

Super fund*

Name*

First Last

Email Address*

Hidden

Generic email

Subject

(You can edit this)

Your message to your super fund*

(Note: the name of your super fund will be added to the top of the email and your name will be added to the bottom)

Trion is one of several new projects incompatible with the Paris climate goals that Woodside is pursuing. In fact, the company plans to increase oil and gas production by at least 45% by 2027,[1] despite climate science telling us production must begin falling “immediately and steeply.”[2] What’s worse is that Woodside wants to continue exploring for new oil and gas with a view to maintaining production growth well into the 2030s,[3] when the International Energy Agency has made it clear that no new oil and gas fields should be developed beyond those approved as of 2021 if the world is to have a chance of limiting global warming to 1.5°C!

Woodside has faced significant investor backlash over its climate strategy over the past two years, with 49% of investors voting against Woodside’s dodgy plan in 2022 and 35% of investors protesting the reelection of company director Ian Macfarlane this year. Proceeding with a new oil field in 2023 is just another example of Woodside’s failure to heed investor demands to align with global climate goals.

It’s clear that years of investor engagement with Woodside has failed to rein in the climate-wrecking plans of a company hell-bent on expanding oil and gas production, as demonstrated once again by the company’s decision to sanction Trion. I demand that you immediately and publicly withdraw capital from Woodside in response to this egregious decision.

[1] https://www.marketforces.org.au/investors/investor-briefing-woodside-santos-march-2023/

[2] https://productiongap.org/2021report/

[3] https://www.woodside.com/docs/default-source/asx-announcements/2023-asx/trion-teleconference-transcript.pdf

Sincerely,

Hidden

Message for members of ethical funds (Australian Ethical, Cruelty Free Super, Future Super, Verve Super) and NGS Super

Good news! Your fund does not invest in Woodside.

Hidden

Email to AustralianSuper

Note: This will send a formal complaint to AustralianSuper.

Subject

(You can edit this)

Your message to AustralianSuper*

(You can edit this, too. Your name will be automatically added at the end.)

To AustralianSuper,

Woodside has recently sanctioned the Trion oil field in the Gulf of Mexico, a decision that flies in the face of warnings from climate scientists that global fossil fuel production and use must decline if we are to have a chance at a safe climate future. As a member of AustralianSuper, I am making a formal complaint regarding the fund’s apparent failure to adequately engage with Woodside over its climate strategy, allowing the company to proceed with taking final investment decisions on new oil or gas projects like Trion.

Woodside has faced significant investor backlash over its climate strategy over the past two years, with 49% of investors – including AustralianSuper – voting against Woodside’s dodgy plan in 2022. This year, 35% of investors protested the reelection of company director Ian Macfarlane. Was AustralianSuper one of the investors that took further action and voted against the reelection of Ian Macfarlane? If not, then AustralianSuper has failed to use its massively increased position in the company to push for climate action in line with its own commitment to net zero emissions by 2050, letting Woodside off the hook by signalling to the company it can go ahead and sanction new oil or gas fields with impunity.

How is AustralianSuper going to escalate action at Woodside? This decision to proceed with Trion has happened on AustralianSuper's watch. The fund’s significant active position in Woodside necessitates a public response.

It’s clear that years of investor engagement with Woodside has failed to rein in the climate-wrecking plans of a company hell-bent on expanding oil and gas production, as demonstrated once again by the company’s decision to sanction Trion. The outcome I’m seeking to my complaint is for AustralianSuper to immediately and publicly withdraw capital from Woodside in response to this egregious decision.

[1] https://www.marketforces.org.au/investors/investor-briefing-woodside-santos-march-2023/

[2] https://productiongap.org/2021report/

[3] https://www.woodside.com/docs/default-source/asx-announcements/2023-asx/trion-teleconference-transcript.pdf

Sincerely,

Hidden

Email to HESTA

Subject

(You can edit this)

Your message to HESTA*

(You can edit this, too. Your name will be automatically added at the end.)

To HESTA,

Woodside has recently sanctioned the Trion oil field in the gulf of Mexico, a decision that flies in the face of warnings from climate scientists that global fossil fuel production and use must decline if we are to have a chance at a safe climate future. As a member of HESTA, I am calling on the fund to respond to this development by publicly speaking out against Woodside’s decision to sanction Trion as well as implementing the fund’s escalation framework to the fullest extent by divesting from this company.

Woodside has faced significant investor backlash over its climate strategy over the past two years, with 49% of investors – including HESTA – voting against Woodside’s dodgy plan in 2022. This year, 35% of investors protested the reelection of company director Ian Macfarlane. Aside from being one of the investors which voted against Ian Macfarlane’s reelection, HESTA went further by also voting against the reelection of two other directors, against the election of two new directors, and for the ‘capital protection’ shareholder resolution. Despite HESTA putting Woodside on a watchlist in September 2022 and the fund’s voting at Woodside’s annual general meeting this year, Woodside has taken no notice and made the decision to proceed with yet another project incompatible with 1.5°C of warming.

It’s clear that years of investor engagement with Woodside has failed to rein in the climate-wrecking plans of a company hell-bent on expanding oil and gas production, as demonstrated once again by the company’s decision to sanction Trion. Although HESTA has made an effort as an active owner by ramping up the pressure at Woodside in recent times, it’s clear HESTA has exhausted all available stewardship tools and so further, more drastic action is now needed. I demand that you immediately publish a timeline for withdrawing capital from Woodside in response to this company’s egregious decision to sanction a new oil field.

[1] https://www.marketforces.org.au/investors/investor-briefing-woodside-santos-march-2023/

[2] https://productiongap.org/2021report/

[3] https://www.woodside.com/docs/default-source/asx-announcements/2023-asx/trion-teleconference-transcript.pdf

Sincerely,

Hidden

Email to Spirit Super

Subject

(You can edit this)

Your message to Spirit Super*

(You can edit this, too. Your name will be automatically added at the end.)

To Spirit Super,

Woodside has recently sanctioned the Trion oil field in the Gulf of Mexico, a decision that flies in the face of warnings from climate scientists that global fossil fuel production and use must decline if we are to have a chance at a safe climate future. As a member of Spirit Super, I am keen to know how the fund will respond to this development in light of its 2030 fossil fuel reserves and emissions reduction targets?

This decision to sanction Trion adds to Woodside’s fossil fuel reserves and would lock in higher emissions for decades to come. How is Spirit Super planning on responding to this development, in light of the fund’s fossil fuel reserves and emissions reduction targets? The fund must publicly demand an end to Woodside’s fossil fuel expansion plans and reduce exposure if the company fails to respond.

Woodside has faced significant investor backlash over its climate strategy over the past two years, with 49% of investors – including Spirit Super – voting against Woodside’s dodgy plan in 2022. This year, 35% of investors protested the reelection of company director Ian Macfarlane. Proceeding with a new oil field in 2023 is just another example of Woodside’s failure to heed investor demands to align with global climate goals.

It’s clear that years of investor engagement with Woodside has failed to rein in the climate-wrecking plans of a company hell-bent on expanding oil and gas production, as demonstrated once again by the company’s decision to sanction Trion. I am therefore calling on Spirit Super to publicly denounce Woodside’s final investment decision in Trion, demand Woodside shelve its planned fossil fuel expansion projects, and begin reducing exposure to this company in response to its egregious decision to proceed with Trion.

[1] https://www.marketforces.org.au/investors/investor-briefing-woodside-santos-march-2023/

[2] https://productiongap.org/2021report/

[3] https://www.woodside.com/docs/default-source/asx-announcements/2023-asx/trion-teleconference-transcript.pdf

Sincerely,

Hidden

Email to Vision Super

Subject

(You can edit this)

Your message to Vision Super*

(You can edit this, too. Your name will be automatically added at the end.)

To Vision Super,

Woodside has recently sanctioned the Trion oil field in the Gulf of Mexico, a decision that flies in the face of warnings from climate scientists that global fossil fuel production and use must decline if we are to have a chance at a safe climate future. As a member of Vision Super, I am keen to know how the fund will respond to this development and build on its active ownership efforts to date?

Woodside has faced significant investor backlash over its climate strategy over the past two years, with 49% of investors – including Vision Super – voting against Woodside’s inadequate plan in 2022. While Vision Super’s escalation at Woodside this year by filing shareholder statements has certainly not gone unnoticed by Vision Super members and the superannuation industry at large, Woodside has failed to respond to this escalation and gone on to sanction a new oil field anyway.

It’s clear that years of investor engagement with Woodside has failed to rein in the climate-wrecking plans of a company hell-bent on expanding oil and gas production, as demonstrated once again by the company’s decision to sanction Trion. This needs to be a ‘line in the sand’ moment for investors like Vision Super, particularly as the fund’s suite of active ownership tools have failed to deliver change at Woodside. I am calling on Vision Super to publish a pathway to exiting its passive holdings in Woodside in response to the company’s egregious decision to sanction Trion.

[1] https://www.marketforces.org.au/investors/investor-briefing-woodside-santos-march-2023/

[2] https://productiongap.org/2021report/

[3] https://www.woodside.com/docs/default-source/asx-announcements/2023-asx/trion-teleconference-transcript.pdf

Sincerely,

Of course I want to get updates about this campaign from Market Forces!

Hidden

TOOK ACTION: Super – Woodside Trion FID – June 2023

Figure 1: Woodside projected oil & gas production, 2022 to 2027

**Source:** Market Forces analysis of Woodside reporting.

Woodside currently enjoys the financial backing of three of Australia’s ‘big four’ banks – ANZ, NAB and Westpac. In March 2022, these three banks all helped finance a $4.6 billion loan to Global Infrastructure Partners to acquire a 49% stake in Woodside’s Pluto 2 liquefied natural gas (LNG) project, and in July 2022, ANZ and Westpac each loaned $126 million to Woodside as part of a $1.8 billion general corporate loan.

Aside from a small group of ethical funds and industry fund NGS Super (which divested from Woodside last year), almost every super fund in Australia invests members’ retirement savings in Woodside, thereby enabling this climate wrecker to take decisions on new oil and gas projects like it has done today. Super funds have claimed for years that remaining invested in companies like Woodside gives them a ‘seat at the table,’ or the power to influence the climate strategies of companies with fossil fuel expansion plans. Yet a recent Market Forces report found super funds are failing to do so, and it’s clear that Woodside’s decision to proceed with a new oil field in 2023 means engagement from investors (including super funds) is failing to rein in the expansion plans of a company hell-bent on expanding oil and gas production.

Investors, including our super funds, must recognise their years of engagement with Woodside are failing to bring the company into line with global climate goals, as once again demonstrated by today’s FID on Trion. The time has come for investors to publicly withdraw capital from the company over its refusal to rein in its climate wrecking oil and gas expansion plans.

* Based on a stated 2C resource of 479 million barrels and using emissions factors from the Australian government.