Introduction

Woodside Energy Company is an Australian worldwide energy corporation that was created in
1954 and has a significant impact on the global climate. It has made an important contribution to
the environment of the world, but a company like this still faces many problems that affect living
organisms. The purpose of this report is to identify the company’s achievements and challenges
that need to be addressed. Moreover, the report will give the optimal methods to solve the
outstanding problem of the Scarborough project. The analysis will be based on the information
collected from the newspaper and the report links in the case study section.

Context of case study

This corporation developed based on three pillars of oil, gas, and new energy with diverse
opportunities will support Woodside in thriving during the global energy transition. In November
2021, Woodside and BHP inked a binding share sale agreement for the merger of Woodside and
BHP's petroleum businesses and with this combination the company will get a stronger balance
sheet and more stable operating cash flows to enable shareholder rewards and corporate
transformation to support the energy transition (Annual Report 2021). Woodside has a great
influence on the global climate environment when it is among the top 10% companies in the
2022 S&P Global Corporate Sustainability Assessment (Sustainability, Woodside website). In
2022, Woodside Energy Group Ltd received a rating of AAA in the MSCI and an ESG risk rating
of 31,6 and was assessed by Sustainalytics (Sustainability, Woodside website). Woodside’s net
equity for Scope 1 and 2 greenhouse gas emissions has decreased by 10% below the 2016-2020
gross average and their target is a 15% reduction in 2025 (Climate Report 2021). Two major
projects have been promoted strongly in recent years targeting natural gas resources and the first
oil project. Senegal's first oil project is the Sangomar Field Development Phase 1, with first oil
expected in 2023. They are attempting to collaborate with the Senegalese government and
contractors to realize their mutual goals (Australian Growth Project, Woodside website). Beside
that, the Scarborough Project is a natural gas deposit in Western Australia that will play an
important role in assisting neighboring Asian countries to reduce emissions and fulfill rising
energy demand (Australian Growth Project, Woodside website). The present Pluto train 1 will be
modified to handle up to 3 million tons, and a Pluto train 2 with a capacity of 5 million tons will
be erected at the site to process up to 225 terajoules per day for the Western Australian markets
(Scarborough Gas Project and Pluto Train 2, Woodside website). Scarborough will play a critical
role in assisting nations that still lack access to affordable and dependable electricity as the globe
transitions to net zero and the usage of renewable resources grows.

Analysis

As we know that Woodside company is now focusing on the Scarborough Project which may
bring many benefits to Asia however the project has faced many troubles from social and
environment perspective. In its enormous AUD $16.5 billion Scarborough liquefied natural gas
project proposal, the company persisted in saying that increased gas exports will lower emissions
in Asia and Woodside did not publicize the project report to CSRIO (Climate News Australia,
Smail E). This has affected to UN Sustainable Development Goals and can face a lot of criticism.
Beside that, UN Secretary General Antonio Guterres pointed out that Pluto’s expansion is
incompatible with the Paris Agreement because a thorough analysis of the overall Scarborough-
Pluto project's GHG implications discovered that the emissions are much higher than Woodside
and state government estimates suggest (Climate News Australia, Smail E). Even though,
Woodside has stated that its gas will help reduce emissions by replacing polluting coal, Meg
O'Neill, the CEO of Woodside, even went so far as to dismiss the conclusions of a CSIRO study
that Woodside had ordered and this business appears to believe that it can disregard climate
science and severe community worry in the name of profit (Petrass MR, 19 May 2022). The
second issue that this project has to deal with is marine pollution which has increased
significantly. Woodside is an energy corporation, so living creatures are also shareholder of the
firm because shareholder are entities affected by the company. The Scarborough gas field is
situated in the center of one of the world's richest maritime habitats, roughly 375 kilometers off
the northwest coast of Western Australia (Sullivan E, 22 June 2022). Woodside will destroy
valuable animal habitat, severely disturb the lives of marine creatures, and threaten the extinction
of unique, endangered individuals. Natural creatures from the ocean are facing many
consequences from the company and the most dangerous risk is death for them. Furthermore, the
Scarborough to Pluto project is expected to produce 1.37 billion tons of carbon dioxide
equivalent throughout its lifespan which is the amount of pollution caused by 20,000 aircraft
each day around the globe for 25 years (Sullivan E, 22 June 2022). Because of this, acid rain will
disrupt people's lives and obliterate Australia's cultural heritage such as the ancient Murujuga
Aboriginal rock art (Sullivan E, 22 June 2022).

Recommendation

Failure is a necessary part of success in life. Even if it's a big organization like Woodside, it's
critical to understand how to address and identify the missing piece. I have some suggestions to
deal with two challenges that the organization is experiencing, if an early solution is found, the
project will be successful. Firstly, the firm is obligated to give the UN and CSIRO an open and
transparent project report. The report should include precise project emission estimates, as well
as climate analyses of the Scarborough. In order to meet the Paris Agreement, the report must
have a commitment to do as little damage as possible to the maritime environment. Beside that,
in order to avoid affecting the environment and fulfill the commitments, the company should
change the location of the project. The corporation must conduct a general meeting and then
distribute the information to the shareholders to see if they can assist and have the government
accept it. The project should reduce the distance from 375 kilometers to less than 200 kilometers
to the mainland to carry gas resources to Pluto 2. With the project's relocation, there would be
less marine life and it would be faster and easier for the corporation to transport gas. Moreover,
Woodside can decrease the number of well drillers from 13 to less than 10 because the project
has is easier to transport from the new location. This modification will increase community trust
in the program, lead to greater success and most importantly, reduce climate change.

Conclusion

Woodside had a history of success since its founding and now has international influence. With a
new project called Scarborough recently launched will help the company develop more
outstanding renewable energy. However, there are still many shortcomings in the implementation
process. These negative issues raise concerns about aquatic habitats that will be affected by the
rigs as well as emissions from the project. The lack of confidence from countries around the
globe is also worrying when the company's reports are not transparent. The company needs to
solve these backlog issues as soon as possible to return the habitat to marine life and win the trust
of the people. Hopefully the project will have more positive changes to improve the environment
for a better life.
Reference

(1970)  Sustainability/ESG Reports - Woodside Energy, Woodside website, accessed 5 April

2023. https://www.woodside.com/sustainability?
gclid=CjwKCAiA3KefBhByEiwAi2LDHJQ1paMO2bJrWsDSkmQmO6MgXxq5PEz-ha53Md4n-
l2Hwl1DmHUN_RoCsYoQAvD_BwE

Woodside (2021)  Climate Report 2021, accessed 5 April

2023. https://www.woodside.com/docs/default-source/investor-documents/major-reports-(static-
pdfs)/2021-climate-report/climate-report-2021.pdf

(1970)  Australian Growth Project/ What We Do - Woodside Energy, Woodside website, accessed 5
April 2023. https://www.woodside.com/what-we-do/growth-projects

(2021)  Annual Report 2021, Woodside website, accessed 5 April

2023. https://www.woodside.com/docs/default-source/investor-documents/major-reports-(static-
pdfs)/2021-full-year-results/annual-report-2021.pdf

Smail E (4 May 2022) 'Scarborough Project Approved Despite Controversy Over Woodside Energy
Emission Claims (Video) - Climate News Australia', Climate News Australia, accessed 8 April
2023. https://climatenewsaustralia.com/scarborough-project-approved-despite-controversy-over-
woodside-energy-emission-claims-ext-visuals/

Sullivan E (22 June 2022) 'What is Woodside's controversial Scarborough gas Project', Australian
Conservation Foundation, accessed 5 April 2023. https://www.acf.org.au/what-is-scarborough-
project

Petrass MR (19 May 2022) 'Woodside under fire for greenwashing, gaslighting and cultural
destruction accusations at "chaotic" AGM', The Fifth Estate, accessed 5 April
2023. https://thefifthestate.com.au/business/woodside-under-fire-for-greenwashing-and-attempts-to-
breach-international-conventions-ahead-of-bhp-merger/

(1970)  Scarborough Gas Project and Pluto Train 2 - Woodside Energy, Woodside website,
accessed 5 April 2023. https://www.woodside.com/what-we-do/growth-projects/scarborough