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Blueprint of 5 strategic moves to help AGL transition


AGL Investors outline how the company can go from Laggard to Leader

A group of impact investors, with a relevant interest in more than $50m worth of AGL shares (representing less than 5 percent of AGL), has released a new blueprint today detailing how AGL can reset its strategy to once again become a leading energy company.

The blueprint – “One AGL: From Laggard to Leader” – was written by Climate Energy Finance for the Sentient Impact Group (Sentient) and outlines five strategic moves that the impact investors consider AGL should make to address its declining core business and governance issues and, seize the opportunity to lead the energy transition for Australia.

The blueprint has been shared with the AGL board to help inform its efforts to map out a future direction following the abandoned demerger process.

Sentient, an impact investment funds manager, and the relevant impact investors are encouraging the AGL board to develop appropriate strategic plans aligned with the Paris Agreement and a 1.5°C limit, consistent with the critical need to decarbonise our economy. Sentient works with impact and ESG capital providers to support companies in transition and enable them to meet emission commitments.

The CEO of Sentient and former CEO of the Clean Energy Finance Corporation, Oliver Yates said, “This group of AGL impact investors strongly support the development of an alternative strategy that leverages the benefits of AGL’s vertical integration, market strength, balance sheet resources and all the experienced management and staff.”

Author of the blueprint and Director of Climate Energy Finance, Tim Buckley said, “This blueprint has been developed following conversations with dozens of key AGL stakeholders including investor groups and experienced financial and industry experts. There is a large investment opportunity for AGL to seize with the right focus and mindset.”

“We welcome the abandonment of the demerger strategy. There are tremendous opportunities for AGL in the energy transformation with the right governance and executive leadership who are credentialed to execute this blueprint.”

The five strategic pillars of the report include:
1. Exit coal-fired power generation within a decade;
2. Support the community in the move from coal to renewables;
3. Build out renewable energy generation and storage ahead of coal closures;
4. Digitise in order to drive operational excellence and leverage AGL’s leading 4.5 million customer base; and
5. Source disruptive technologies and extend future energy system offerings.