Woolworths won’t bow to ‘endangered’ AGM push over Tasmanian salmon

Woolworths is refusing to bend to demands by activist investors it quit using salmon farmed in Tasmania’s Macquarie Harbour because of the threat to an endangered species.

The grocery chain has recommended shareholders at its October 31 annual general meeting vote against a resolution demanding Woolworths stop using Macquarie Harbour salmon in its own-branded products from next year, insisting that its seafood is sourced under ecologically responsible policies.

The campaign, which is also targeting Coles, is being led by the Sydney-based Sustainable Investment Exchange and backed by other ethical investment groups representing more than 100 Woolworths shareholders, though they account for just 0.004 per cent of the $41.5 billion company.

As with the Coles AGM set for November, the alliance of investors has also filed a resolution seeking to give shareholders more say with the Woolworths management and board. That too is being opposed by Woolworths.

Remote Macquarie Harbour on Tasmania’s west coast is the last remaining habitat for the ancient Maugean skate, a ray which is said to be threatened with extinction because of the rapid expansion of salmon farming.

Woolworths and Coles are among the biggest buyers of the salmon.

The campaign against the retailers comes amid an already difficult time reputationally for the groups, which are being pursued by the competition regulator for allegedly faking grocery discounts and hammered by politicians who claim they are contributing to Australia’s cost-of-living pressures.

Woolworths is also this year facing the threat of a board spill after receiving a first strike against its remuneration report at the 2023 AGM, partly due to rewarding executives after the deaths of two staff.

The company has since amended its executive bonus plans to make them managers and bosses more financially accountable for serious workplace accidents.

However, it is refusing to yield on Macquarie Harbour, telling shareholders in its notice of meeting that all three of its Australian salmon providers operate in the harbour under “globally recognised independent third-party certifications”.

But the certification claim is disputed by the Sustainable Investment Exchange, which says it is “deceptive” and the subject of a complaint to the ACCC.

Woolworths noted that marine farming in Macquarie Harbour is being reviewed by the Federal Government.

It said it would await “the outcome of that study and scientific research currently under way, in addition to any updated guidance from the environmental regulators, to help inform our ongoing work and support quality standards and practices in our supply chain”.

The resolution on salmon farming would only be put to shareholders if the AGM approves a change to the Woolworths constitution to enable investors by ordinary resolution to “express an opinion, ask for information, or make a request” about how the company is being run.

The special resolution by the Sustainable Investment Exchange mirrors others put to the likes of Woodside Energy and reflects the growing rise of corporate activism as shareholders seeking more influence over their investments.

Woolworths said it did not support the resolution, arguing the board and management already had “extensive dialogue and interaction” with shareholders and advocacy groups.