AGL says it is taking its emissions reduction plan seriously. 

AGL Energy CEO, Damien Nicks, has emphasised the company's commitment to swift emissions reduction, seeking to address concerns raised by its largest shareholder, Grok Ventures, led by Mike Cannon-Brookes. 

Nicks says AGL is moving “as fast as we can” and will review its decarbonisation strategy every three years.

Grok Ventures, which holds over 10 per cent of AGL, has urged the company to heighten its decarbonisation ambitions, specifically regarding the closure dates of its major coal power plants, Bayswater and Loy Yang A. 

Other investors are pressing for alignment with the Paris climate accord, which implies earlier shutdowns for these large generators.

Despite the scrutiny, AGL recently reported a surprising 25 per cent surge in core full-year profits, and Nicks revealed plans for a considerable increase in earnings this year. 

He highlighted AGL's shareholder-approved climate transition plan and its intent to incorporate renewable energy and battery storage installations.

“We will continue to develop and deliver on our transition plan, and we will ultimately be measured on that. We form part of the broader market that we operate within, but again we will go as fast as we can and we will review that plan every three years,” Mr Nicks has told reporters.

He expressed determination in pursuing projects such as the $800 million battery initiative at the former Liddell coal power plant site, aligning with AGL's goal to add substantial renewable and firming capacity by 2027.

AGL is also addressing concerns about the rising influence of weather-dependent renewables by investing between $400 million and $500 million annually in enhancing the flexibility of Bayswater and Loy Yang A.

The announcement influenced AGL's stock performance, which initially saw an uptick due to strong results but later faced a sell-off due to capex concerns and a flat wholesale electricity outlook. AGL shares ended down by 3.1 per cent at $11.22.