Exclusive: GHD announcement it has ‘no ongoing contracts’ on project comes as Siemens considers backing out

This article is more than 9 months old

This article is more than 9 months old

The global engineering and services firm GHD has told staff it has concluded its work on Adani’s Carmichael coal project after a 10-year association with the company.

The announcement follows an intense campaign by activists, a movement of engineers to shift their industry away from fossil fuels, and significant internal pressure on management by GHD staff.

It also comes as another engineering firm, Siemens, considers backing out of an Adani contract.

Queensland ordered to release secret report on black-throated finch conservation Read more

GHD was Adani’s first project partner in Australia. It advised the Indian company after it acquired the project from Linc Energy in 2010 and authored the environmental impact statement that erroneously claimed the project would generate 10,000 jobs.

In its email to staff, GHD’s executive general manager, Phil Duthie, said the firm’s current contractual obligations with the mine had concluded.

“We have no ongoing contracts in relation to this project,” Duthie said. “I’d like to take this opportunity to thank you for your professional approach over the last six months, a period in which GHD has been publicly targeted by activists.”

Duthie said the company would also soon release a plan aimed at supporting the transition, but that the company would continue to support fossil fuel clients in the meantime.

“We recognise the world’s transition to a sustainable energy future is essential, and that the energy shift is complex and will take time,” he said.

The Stop Adani campaign believes the withdrawal of GHD is a massive win for its movement. Campaigners sent more than 80,000 letters to the firm, conducted actions at GHD offices and mobilised the engineering sector and a large segment of GHD’s employees.

Julien Vincent, the chief executive of Market Forces, said GHD’s latest comments were an important step, but was concerned the company still had not ruled out future work for Adani or other work that would expand the fossil fuel industry.

In his email, Duthie points to an online Q&A that does not explicitly rule out working with Adani in the future.

Leading Australian engineers turn their backs on new fossil fuel projects Read more

“They’ve failed to rule out working any further on this project, and they’ve clearly got a long way to go to align their business plans with Paris [targets],” Vincent said.

“It’s fair to say GHD has really bungled this conversation internally and externally in the past few months. We would appreciate a much clearer commitment the company would remain out in future. Hopefully, after the experience of the last couple of months, management realises that an association with Adani is like attaching kryptonite to your brand.”

Guardian Australia understands the company has not actively sought to tender for future work, including engineering and signalling work on the US$1.1bn rail component.

The German engineering company Siemens won a rail signalling contract and in the past two weeks has been targeted by activists. Its chief executive, Joe Kaeser, said on Monday its work with Adani was now under review.

Joe Kaeser (@JoeKaeser) I want to thank everyone for reaching out on the #Adani project in Australia. I was not aware of and take your concerns seriously. I will diligently look into the matter and get back to you soon. @Siemens view & decision may or may not change. But you deserve an answer.

A GHD staff member said it was clear the language and attitude from senior staff had shifted in recent months.

“Before it seemed management were very dismissive of those concerns. Now everyone feels they’ve been heard. There has finally been that follow-through.”

Robert Care, the 2014 professional engineer of the year, said the decision by GHD would have an impact on the broader sector.

Aboriginal traditional owners say they are being punished for opposing Adani coalmine Read more

“GHD is a very significant and valued member of the engineering profession and community,” Care said.

“People will take note of what they do and don’t do.

“I think all organisations will at some stage face the question of whether they should carry on doing work or whether they should stop.

“What we’re asking people to do is look deeply at whether the sort of work they’re doing fits with a sustainable future and how it fits with their code of ethics.

“We as engineers and scientists know the sorts of things we can do to make a difference. We’ve got to work at how we can assist people to make the transition. The thing that really worries me is if we leave this later and later to effect the transition, the disruption is harder for people to cope with.”

Adani has been contacted for comment.