Two of Australia’s largest pension funds said on Monday they are voting against Woodside Energy’s climate plan, ahead of its annual meeting on Wednesday, where the company’s chairman is facing rare opposition from major investors.

Aware Super, which manages A$170 billion ($109 billion) has voted against Woodside’s climate transition action plan and the re-election of chair Richard Goyder to signal its displeasure over the company’s efforts to cut emissions, according to a statement on Monday.

“This decision has not been taken lightly and is underpinned by our belief that climate change is one of the most significant financial risks to our portfolio,” the statement said.

AustralianSuper, Australia’s largest pension fund, on Monday also said it would vote against the plan because of concerns it had about how Woodside would reach net zero emissions. However, it will back Goyder’s re-election.

Both funds are top ten shareholders according to portfolio holding disclosures reviewed by Reuters and data from Woodside’s annual report. Aware Super said it had a 1.3% stake.

The moves by two of Australia’s largest investors reflects unease about whether the company’s plans to cut emissions are sufficiently detailed or ambitious.

Environmental activists want Woodside to take more aggressive action on climate change and shelve major new oil and gas projects and oppose its reliance on carbon credits to help meet its targets.

In 2022, nearly 49% of investor votes were against the company’s climate plan, which Woodside put to an advisory vote for the first time.

Major proxy adviser CGI Glass Lewis recommended investors should vote against Goyder’s re-election and the climate plan, in an unusual rebuke by the firm.

Funds including HESTA, Norway’s KLP and Allianz Global Investors have all lined up against the climate plan.

More contentious is the campaign to unseat Goyder, who has said Woodside is addressing climate concerns but must do so in an orderly way to protect shareholder value.

“Another massive vote against Woodside’s climate plan is meaningless unless investors escalate pressure through their binding votes on directors,” according to Will van de Pol, CEO of activist group Market Forces.

Allianz said it would vote against Goyder’s re-election, holding him accountable for the transition plan that it said “is likely to still fall short of a Paris…aligned trajectory”.

Woodside referred questions about Aware Super’s decision to a recent letter from Goyder to shareholders, which defended the company’s “disciplined approach.”

Goyder is also chairman of Qantas, which he is quitting this year, after the airline’s reputation was battered by a string of legal and regulatory actions.

Read more @marketscreener