Consultancy firm ACIL Allen worked on national gas policy for both government and industry lobby groups yet did not declare any conflicts of interest to the federal government, according to an investigation published today by Climate Integrity.
One of the policies that ACIL Allen worked on for both government and industry was the Future Gas Strategy (FGS). Published in May 2024, the government’s Future Gas Strategy shapes the nation’s energy agenda by defining the role that fossil gas will play in the economy through to 2050. The strategy has faced criticism for backing new gas supply that’s inconsistent with a net zero pathway, and underplaying the role of renewables and storage.
Climate Integrity’s investigation and analysis, which drew on documents obtained under the Freedom of Information Act, uncovered this significant conflict of interest, with ACIL Allen ‘working both sides of the fence’ for both the gas industry lobby and the Department of Climate Change, Energy, the Environment and Water (DCCEEW) in 2023 and 2024.
“If part of the evidence base for a major national policy can come from consultants with undeclared industry ties, how can the public trust the policy?” says Claire Snyder, Executive Director at Climate Integrity. “The Future Gas Strategy is set to shape Australia's energy future until at least 2050. It is informing policymaking that will shape the energy transition for decades to come. Australians should be able to trust that crucial government decisions about energy are being made based on advice that is free from conflicts of interest.”
The key findings from Climate Integrity’s investigation include:
Advisory firm ACIL Allen did not declare a clear conflict of interest to the government. Over 2023 and 2024, consultancy ACIL Allen was paid by both the federal government and gas and business industry groups to work on national gas policy. It was contracted by the federal government to deliver analysis to inform the Future Gas Strategy, and its work for industry was used to lobby the government on the same strategy.
ACIL Allen held a conflict of interest during its $273,713 contract with DCCEEW, work intended to inform the development of the Future Gas Strategy and broader gas policy. The firm had also completed work for gas and business lobby groups Gas Energy Australia and the Business Council of Australia, which was used in the organisations’ submissions to the Future Gas Strategy.
ACIL Allen failed to disclose a conflict of interest to DCCEEW, even though the Supplier Code of Conduct was in force when the reports related to the Future Gas Strategy were delivered. In 2023, ACIL Allen was working for industry and government on gas policy at the same time.
ACIL Allen’s analysis consistently overstated the cost of zero emissions alternatives to gas, while entirely omitting the climate costs of developing new gas supplies. Reports produced by ACIL Allen for both gas industry interests and the federal government adopt a consistent stance that gas should remain a feature of Australia’s energy system to 2050 and beyond, recommending that government support is provided to enable the development of new gas supplies.
ACIL Allen worked on three reports for industry associations representing fossil fuel interests, including Gas Energy Australia, the Business Council of Australia, the Australian Pipelines and Gas Association and Energy Networks Australia. These reports were used in submissions to the Future Gas Strategy and Electricity and Energy Sector Plan consultation processes. The report for Gas Energy Australia was quoted in the Future Gas Strategy report, with no reference to who commissioned the work. ACIL Allen also worked on two reports for the DCCEEW. One advised on east coast gas market reforms and another was commissioned to inform the Future Gas Strategy and the Energy and Electricity Sector Plan.
"Documents obtained by freedom of information requests were integral to this Climate Integrity investigation,” says Alexandra Blucher, Head of Investigations at Climate Integrity.
"The documents show that the consultancy being paid by the federal government - with taxpayer dollars - to inform national gas policy was also working for the industry that policy would affect. That's exactly the kind of conflict the public deserves to know about."
Climate Integrity says that ACIL Allen not declaring this conflict of interest to the government is a serious omission, given these companies and industry bodies have a direct financial interest in the outcomes of the Future Gas Strategy.
"The findings of this investigation raise important questions about the integrity of the information used to inform the Future Gas Strategy and broader gas policy. The relevant departments should review and update affected policies using sound, independent evidence that is free from conflicts of interest to rebuild public trust in gas policy credibility,” says Claire Snyder, Executive Director at Climate Integrity.
“The Commonwealth’s own Supplier Code of Conduct deems failing to declare a conflict of interest a ‘severe’ breach. All government departments and agencies commissioning research and analysis from consultancies should seek guarantees that conflicts of interest will be declared and mitigated, especially when a consultancy’s clients have a particular interest in the government adopting particular policy positions.”
The not-for-profit advocacy group has also previously raised concerns about the work of EY, KPMG and McKinsey, and is calling on advisory firms to be transparent by declaring conflicts of interest. Climate Integrity also calls on the government to rigorously vet and assess advisory firm involvement in the shaping of future policies, strategies and legislation.
-ENDS-
About Climate Integrity
Climate Integrity is a not-for-profit research and advocacy organisation engaging with companies, policy makers, regulators and shareholders to champion integrity, accountability and transparency in corporate transitions to zero emissions. Its industry-leading research and analysis on Net Zero pledges (from companies including Qantas, Origin, AGL and Woolworths) and the Real Zero transition is helping establish a new benchmark for corporate leadership and climate action in Australia.
Contact
Media enquiries: Emma Webber, emma@goodandproper.co
Climate Integrity enquiries: Claire Snyder, claire@climateintegrity.org.au
