Woodside Energy is at a crossroads with environmentalists and investors over its climate strategies.

Woodside's Climate Transition Action Plan (CTAP) has been met with significant criticism from environmental groups. 

These groups argue that the plan falls short of setting a credible path for reducing Scope 3 emissions; those released by customers using Woodside's products.

Meg O’Neill, CEO of Woodside, has defended the company's strategies, pointing to the recent IPCC report which presents multiple pathways that accommodate continued gas demand while aiming to limit global warming. 

Despite these defences, major advisory firms have suggested shareholders vote against the CTAP, with notable support still backing Chairman Richard Goyder's re-election.

The situation has put Goyder in a delicate position, as activists push for his removal, citing a lack of responsiveness to investor concerns regarding climate strategies. This has led to a rift among investors. 

While the superannuation fund HESTA and the Australian Council of Superannuation Investors are voting against the climate plan, they support Goyder’s leadership continuity. 

Woodside's ambitious projects like the $16.5 billion Scarborough gas project in Western Australia and others in Mexico and Senegal are central to the debate. 

These projects are expected to significantly increase Woodside's carbon emissions, contradicting the goals set by the Paris Agreement, according to critics.

Adding to the complexities, Woodside’s strategy includes a target to reduce net direct emissions by 30 per cent by 2030, alongside investing in emissions abatement technologies. 

However, the company's slow progression in green energy investments, such as delays in its liquid hydrogen project in Oklahoma, raises doubts about its commitment to transitioning towards lower-carbon energy sources.