Our approach to the environment and climate change

We are working hard to reduce greenhouse gas emissions and minimise our environmental footprint.

We’re committed to the environment

As Australia’s largest integrated electricity generation and retailing company, we recognise we have a special role to play in supporting and enabling the three major forces of change: customer demand, community expectations and the development of technology.

Electricity from renewable sources, backed by flexible energy storage technologies will power our homes, businesses and vehicles. Energy will be both affordable and smart, and greenhouse gas emissions will be much lower, helping us to tackle climate change. At AGL, we accept the climate science behind this vision.

This is why we’re taking action to responsibly reduce greenhouse gas emissions and manage our environmental footprint, while providing customers with secure and affordable energy. For information about our environmental performance progress, visit our Annual Reports page.

Climate commitments

Australia is at a pivotal moment in the transition of our energy system and AGL Energy remains strongly committed to decarbonisation. 

AGL Energy's climate commitments are documented through the AGL Climate Statement, which includes our goal of achieving net zero emissions by mid-century. 

In addition, and as announced in February 2022, AGL Energy has committed to responsibly transitioning its operations to reduce its environmental footprint, closing coal operations in the following timeframes:

  • Liddell Power Station: April 2023
  • Bayswater Power Station: 2030-2033
  • Loy Yang A Power Station: 2040-2045

This will deliver a reduction in Scope 1 and 2 emissions from our operated electricity generation fleet between 18-27% during FY25-FY34 and between 55-60% during FY35-FY46 compared to a FY19 baseline, after which AGL Energy will achieve net zero for its electricity generation portfolio1.

AGL Energy remains committed to repurposing its thermal generation sites into integrated energy hubs, which includes advancing projects that connect industrial partners into a low-carbon circular economy at the sites. Projects and feasibility studies are already underway at the three identified hubs of Latrobe Valley, Hunter and Torrens. Further, AGL will continue to advance its pipeline of low-carbon firming and renewable projects to bring these online.

Additionally, AGL Energy continues to partner with customers to accelerate their decarbonisation goals, creating and providing carbon neutral offerings for their energy consumption, such as orchestrating VPPs, electric vehicle products and other distributed and behind the meter solutions.

AGL Energy has been in ongoing discussions with key stakeholders regarding our path to decarbonisation and believes that the relevant dates for closure of coal fired power stations will continue accelerate. As Australia’s largest energy generator, owner of the largest portfolio of renewable generation and storage assets of any ASX listed company, and a leading retailer of energy solutions, AGL Energy, its customers and its people have a critical role to play in a responsible transition.  

However we also know that with this scale of change, these closures must not happen outside of a co-ordinated plan across governments, industry, regulators and the community, and we are committed to working with all these stakeholders to achieve this.

AGL Energy’s climate commitments will continue to be reviewed as part of the strategic direction review announced to the market on 30 May 2022.

1Emissions comprise Scope 1 and 2 greenhouse gas emissions for all electricity generation assets, as reported under the National Greenhouse and Energy Reporting Act 2007. Offsets may be used to help achieve emissions reduction targets where necessary.

Responsibly transition our energy portfolio

In 2015, AGL committed not to extend the life of its coal-fired power plants.

As we work toward the full closure of these plants and the Australian economy transitions toward full decarbonisation by mid century, we will continue to run our coal-fired power stations responsibly and safely to supply affordable and reliable electricity, and we will continue supplying gas to our customers.

We will support our people and local communities through change and remain flexible to how customers, community and technology shape the pace of the energy transition.

Rehabilitation

AGL Energy is committed to providing ongoing, transparent disclosure in relation to our approach to the progressive and final rehabilitation of assets at the end of their operational lives. For the latest information of rehabilitation plans and provisions, refer to our FY21 Annual Report.

Community engagement

We strive to make positive social, economic and environmental contributions to the communities we work in.

Energy for Life

Our corporate citizenship program, Energy for Life, seeks to make a genuine contribution to the wider community.