Why is AGL share price slipping today?
Shares in electricity giant AGL Energy are down more than 55% in the last 12 months.
Shares in electricity giant AGL Energy (ASX: AGL) have continued on their downward slide. The stock has already lost nearly 15% of its value in the past month and on Wednesday was down another 2.2% to $6.20 at the time of writing.
Why is the AGL stock price under pressure?
The energy producer and retailer is feeling the heat on news that a major proxy advisor, Institutional Shareholder Services, has backed a resolution demanding the company implement emissions reduction targets ahead of its proposed demerger.
The resolution was proposed by the Australasia Centre for Corporate Responsibility (ACCR) last month and calls on the company to disclose emissions reduction targets as well as detail how the demerged companies' remuneration policies will incentivise progress towards the targets.
The move comes ahead of AGL's annual general meeting on 22 September and is designed to push the company to provide clear climate goals sooner.
AGL already suffered a first strike against its remuneration report at last year's AGM with 46.5% of shares voted against the pay structure. A second strike will prompt a board spill and is a looming concern for investors.
Australia's biggest electricity retailer has already been under fire from shareholders over its plan to split into a new company, AGL Australia under Christine Corbett, while former chairman Graeme Hunt will lead a new coal-focused generator, Accel Energy.
Accel will hold a 15-20% stake in AGL Australia.
AGL Energy repeatedly downgraded its earnings outlook amid the twin challenges of lower power prices and an accelerating transition to renewables and reported a $2 billion full year loss.
It also subsequently announced a shakeup of its top management team, with the executive team cut from 9 members to just 5 after the exits of executive of corporate affairs Elizabeth McNamara, executive general manager of future business and technology, John Chambers, and EGM of strategy and corporate development, Joao Segorbe.
Investors, already fretting about a more than 55% fall in the value of their holdings in the past year, would be hoping the uncertainty is resolved soon.
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