Origin share price dips amid fresh climate pressure from shareholders

The Origin Energy Ltd (ASX: ORG) share price is in the red alongside the broader market as a shareholder advocacy organisation calls for the company to include climate risks in its financial statements.

The Australasian Centre for Corporate Responsibility (ACCR) has filed to put such disclosures to a shareholder vote at the company’s October annual general meeting (AGM).

The Origin share price is currently trading 1.32% lower than its previous close at $5.99.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.7%. The S&P/ASX 200 Utilities Index (ASX: XUJ) has also fallen 0.7%.

Let’s take a closer look at what the shareholder organisation is asking of the energy producer and retailer.

Shareholders ask Origin to put climate front and centre

The Origin share price is sliding amid news the ACCR is fighting to force the company to put climate sensitivity analysis front and centre from the financial year 2023.

ACCR lead analyst Alex Hillman said climate change presented a “material risk” to the company and therefore “firmly belongs in audited financial statements”.

“This is not a radical request,” Hillman said. “Australian regulators have been expecting this since 2018.”

Origin has already suffered significant impairments due to climate transition risks at Eraring, which has led to the early closure of the asset.

In a 1.5°C scenario, which Origin states that it supports unequivocally, its exploration assets in the Beetaloo, Canning, and Cooper basins would likely be rendered worthless.

ACCR lead analyst Alex Hillman

Origin announced it intends to close the Eraring coal-fired power station in 2025 earlier this year. That’s seven years earlier than previously planned.

The station supplies around a fifth of New South Wales’ power, my Fool colleague Mitch reported at the time.

Similar actions to those proposed by the ACCR were asked of oil giants Chevron and Exxon earlier this year. They received support from 38.7% and 51% of their respective shareholders.

Origin acknowledged the ACCR’s filing today. It said it would release its board’s recommendation on the resolution in September.

The activist organisation represents around 0.01% of Origin’s share registry.

Origin share price snapshot

Despite today’s slip, the Origin share price has outperformed in 2022 so far.

The stock has gained 12% since the start of the year. It’s also trading 39% higher than it was this time last year.

Meanwhile, the ASX 200 has slipped around 7% year to date and the same amount over the last 12 months.

The post Origin share price dips amid fresh climate pressure from shareholders appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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