Woodside (ASX:WPL) share price struggles amid climate 'code red'

The UN report says more needs to be done to combat climate change

| More on:
Group of people with banners in climate change protest

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Woodside Petroleum Limited (ASX: WPL) share price is in the red as the UN declares a "code red" for humanity and climate change.

At the time of writing, shares in the oil and gas producer are trading for $21.82 – down 0.55%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.24% higher.

Let's take a closer look at today's news.

"The evidence is irrefutable"

These were the words of United Nations General Secretary, Antonio Guterres, when he handed down the report of the Intergovernmental Panel on Climate Change (IPCC). The IPCC is "the world's most authoritative body on climate science", according to the Australian Broadcasting Corporation (ABC).

"Greenhouse gas emissions from fossil fuel burning and deforestation are choking our planet and putting billions of people at immediate risk," Mr Guterres said.

The report found humanity is only 10 years away from average global temperatures rising by 1.5°C compared with pre-industrial age temperatures. Beyond this mark, the Earth is susceptible to increasing and more severe fires, droughts, floods, and cyclones.

Motley Fool Australia previously reported on this phenomena. Climate economist Nikki Hutley told this reporter that it was inevitable we would hit this dreaded threshold but it was possible to avoid an even larger increase.

The UN report released last night says much the same, and put the Woodside share price in focus, along with other energy shares.

Global warming of 1.5°C and 2°C will be exceeded during the 21st century unless deep reductions in carbon dioxide (CO2) and other greenhouse gas emissions occur in the coming decades.

It adds it will take sustained and intensive effort across the globe to limit the effects of climate change.

From a physical science perspective, limiting human-induced global warming to a specific level requires limiting cumulative CO2 emissions, reaching at least net zero CO2 emissions, along with strong reductions in other greenhouse gas emissions.

General Secretary Guterres called the dire report a "death knell" for fossil fuels.

"The viability of our societies depends on leaders from government, business and civil society uniting behind policies, actions and investments that will limit temperature rise to 1.5 degrees Celsius."

What does this mean for the Woodside share price?

While there are always a variety of factors that affect the share price of any company – including the Woodside share price – today's report may be worrying investors.

As Australia's largest oil and gas producer by market capitalisation, and the 35th largest in the world, this report is surely unwelcome news for Woodside management and shareholders.

In a presentation at the Credit Suisse Energy Conference of June this year, Woodside outlined its plans to transition to a low carbon future.

In it, the company committed to a 15% reduction in greenhouse gas emissions by 2025, a 30% reduction by 2030, and an "aspiration" for net zero carbon emissions by 2050.

It should be noted these targets and aspirations fall short of what the IPCC says is necessary to avoid any further increase in global average temperatures.

The company is also diversifying its energy portfolio, according to the presentation, towards hydrogen, ammonia, and a solar import facility. As well, Woodside says it is investing in carbon capture and storage technology and will vote to include climate reporting at its 2022 AGM.

It remains to be seen what any of this could mean for the Woodside share price.

Woodside share price snapshot

Over the past 12 months,Woodside shares have increased by 7.5%. The ASX 200 Index has, in the same time, increased by 23.6%.

Year-to-date, Woodside shares have depreciated by 5.4%.

Should you invest $1,000 in Vanguard Us Total Market Shares Index Etf right now?

Before you buy Vanguard Us Total Market Shares Index Etf shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Vanguard Us Total Market Shares Index Etf wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

Oil rig worker standing with a clipboard.
Energy Shares

Is the Woodside share price a buy amid the crashing oil price?

Should investors be brave and buy Woodside shares?

Read more »

Couple looking at their phone surprised, symbolising a bargain buy.
Energy Shares

How much upside does Macquarie tip for Boss Energy shares?

One broker is tipping plenty of upside this year for this energy share. 

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

Why Macquarie forecasts this high-yielding ASX 200 energy share could surge 64%

Macquarie expects now could be an opportune time to buy the beaten down ASX 200 energy company.

Read more »

Woman refuelling the gas tank at fuel pump, symbolising the Ampol share price.
Energy Shares

Macquarie downgrades Viva Energy and Ampol shares citing US tariffs impact

Broker says US tariffs will mean weaker margins for oil refining companies such as Viva Energy and Ampol.

Read more »

A miner stands in front of an excavator at a mine site.
Energy Shares

Guess which ASX 200 uranium stock just surged 17% on record production

It’s a great day for faithful investors in this ASX uranium stock. Not so great for the crush of short…

Read more »

Happy teen friends jumping in front of a wall.
Energy Shares

Guess which ASX 200 uranium stock is jumping 7% on big news

Let's see why this stock is having a good session on Tuesday.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

Buying Woodside shares? Here's how the energy company just tapped into $9.3 billion

Woodside’s $9.3 billion partnership announcement could bode well for future dividend payments.

Read more »

Miner looking at a tablet.
Energy Shares

Why Macquarie forecasts 105% gains for this heavily shorted ASX 200 uranium share

The ASX 200 uranium producer could double investors' money in a year, according to Macquarie.

Read more »