Global asset managers Blackrock and Vanguard and super funds HESTA and Aware Super are among the shareholders targeted by 125 healthcare workers and a dozen health and community service organisations.
The letter, sent as part of an ongoing campaign to transform AGL, asks the shareholders to consider the impacts that the proposed demerger will have on public health and to encourage the ASX-listed energy giant to commit to 100 per cent renewable energy by 2030.
“We write as healthcare workers and health and community organisations deeply concerned about the public health impacts of AGL’s proposal to demerge into two separate companies, and we request that you vote against this proposal,” the letter reads.
“Climate change is the greatest and most urgent health threat of our time.
“Its myriad health impacts, mediated through extreme weather events, spread of infectious diseases and food and water insecurity, continue to increase.”
AGL, the heaviest greenhouse gas emitter in Australian, is seen as playing a crucial role in reducing emissions in the energy sector. But the demerger, according to the signatories, is “disastrous” for public health and disallows meaningful progress regarding a timely transition to renewables.
The healthcare workers also alleged that the demerger plans aren’t consistent with the Paris Agreement on climate change and suggested that the energy giant could abandon its responsibility to clean up toxic coal ash dumps.
“Delay in replacing fossil fuel assets with renewable energy would cause local health impacts from toxic pollution in addition to the health impacts of climate change,” the letter states.
“To protect health everywhere, AGL and its investors must lead in enabling a swift and fair transition from fossil fuels to renewable energy.”
AGL has announced 15 June as the date of the demerger vote.
For the demerger to proceed, the company needs approval from at least 75 per cent of shareholders. By contrast, Atlassian co-founder contrast Mike Cannon-Brookes, who recently purchased an 11.3 per cent stake in AGL via his Grok Ventures, needs to muster a 25 per cent shareholder rejection.
In a bid to sway votes, Mr Cannon-Brookes recently published an open letter on his new website, created in a bid to enlist support for his vision, arguing that the demerger plan “makes no sense, or cents”.
“We are incredibly optimistic about AGL’s potential - which is why we’ve joined you as a shareholder - but there will be no turning back if this flawed demerger plan goes ahead. This is our best opportunity, and quite possibly the last to steer this company in the right commercial direction,” Mr Cannon-Brookes said.
But despite heavy opposition, AGL is not wavering. The company recently detailed its plans, noting that the demerger would cost an upfront $260 million plus an additional $35 million in extra costs per year for the demerged entities.
And while costs are listed as "key disadvantages", along with loss of scale and diversification, AGL argued that the advantages outweigh the disadvantages.
Namely, according to AGL, the demerger will ensure AGL Australia and Accel Energy have "strong foundations" for future success and growth as independent, ASX-listed companies, with the flexibility to develop and execute their own strategic plans.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
