Origin Energy

InfluenceMap Score
C-
Performance Band
59%
Organisation Score
58%
Relationship Score
Sector:
Energy
Head​quarters:
Sydney, Australia
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Origin Energy appears to be broadly supportive of the need for ambitious action to respond to climate change in Australia. However, the company has shown mixed support for specific climate-related policy measures, while its position on the long-term role for fossil fuels does not appear to be fully aligned with IPCC guidelines.

Top-line Messaging on Climate Policy: Origin Energy's top-line communications appear supportive of ambitious action on climate change. In its 2022 Climate Management Approach document, accessed in 2022, Origin states that it supports the aim to limit the world’s temperature increase to 1.5°C above pre-industrial levels and stated it supports the UN Paris Agreement. In 2020, the company appeared to support the 2020 climate change bill that would put a net-zero by 2050 target into Australian legislation. In the company’s 2021 sustainability report, it stated that it ‘encouraged the Australian Government to adopt an emissions policy’, appearing to support regulation to act on climate change.

Engagement with Climate-Related Regulations: Origin Energy appears to have shown limited engagement with specific climate-related policies in 2021-22. Nevertheless, in its 2021 CDP response, it stated that it supported the ‘evolution’ of the Safeguard Mechanism and Emission Reduction Fund, however it is unclear if it is supporting changes to the policies to increase its ambition. In the same response, it stated it supported performance standards for road transport and electrical appliances, while also appearing to support Australia’s Renewable Energy Target.

Positioning on Energy Transition: Origin Energy appears to accept the transition towards renewables as the primary energy source in the energy mix, but also advocates for the continued role of fossil gas, which does not appear to be aligned with the IPCC guidelines. In the company’s 2022 industry association review, it stated that ‘Gas will remain important to the wider energy system for the foreseeable future’. It reiterated this position on its corporate website, accessed in 2022, stating that ‘We believe gas will also play an important role in the energy mix for some time’. In June 2022 the Australian Energy Week reported that in an August 2021 earnings call, Origin Energy CEO Frank Calabria stated while the transition to renewable energy is too slow, more investment in fossil gas was required to provide a reliable energy source.

Origin Energy's recent engagement on policies related to the energy transition appears to be positive. In a July 2022 consultation response on the Energy Security Board’s Capacity Mechanism, Origin Energy appeared to oppose the inclusion of coal in the policy. Origin also responded to the consultation on Victoria's 2035 emissions target, in which it appeared to advocate for the state to follow the most ambitious decarbonization scenarios produced by the Australian Energy Market Operator (AEMO).

However, Calabria was reported by AFR in June 2022 to have stated that the Capacity Mechanism needed to include gas, again citing the need to increase firming capacity. Similarly, in August 2021, Origin submitted a consultation response to Victoria’s Gas Substitution Roadmap in which it stressed the need to maintain natural gas in the energy mix to transition from coal and to partner renewables, without placing clear conditions on CCS use. In this response the company also advocated for a decarbonized gas sector by 2050, adding that electrification would not lead to emissions reductions. Also in August 2021, Origin supported the move by the Australian government to subsidize ‘reliable’ energy producers, including coal and natural gas, to supposedly ensure reliable generation.

Industry Association Governance: In August 2022, Origin Energy published a fourth review of its industry associations including an assessment of alignment on climate change positions. The company retained memberships to all of its industry associations, although the company did briefly leave the the Queensland Resources Council in 2020 in response to an suspended anti-Greens advertising campaign in the run-up to the state election, but re-instated its membership in FY2021 after Origin was "satisfied that the QRC had made key changes to its policies on political lobbying" and remains a member in 2022. Origin Energy also holds memberships with Australian Petroleum Production & Exploration Association (APPEA) and the Queensland Resources Council, which have historically opposed ambitious climate policy in Australia, however in the industry association review Origin appear to be satisfied with their positions on climate change action and policy after they were “strengthened” since the previous year.

A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.'

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2022.

QUERIES
DATA SOURCES
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11NS1221
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1010-2-2-2
00100-1-1
1000110
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
39%
 
39%
 
66%
 
66%
 
50%
 
50%
 
31%
 
31%
 
54%
 
54%
 
77%
 
77%
 
87%
 
87%
 
47%
 
47%
 
87%
 
87%
 
50%
 
50%
 
57%
 
57%
 
72%
 
72%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.