Woolworths chairman Scott Perkins is set to secure re-election at the company’s annual general meeting on Thursday after overcoming a challenge spearheaded by environmental activists and ethical investors concerned about the retailer’s salmon sourcing practices. Proxy advisory firms, which guide institutional investors on voting decisions, endorsed his return to the board, citing concerns that removing Perkins would cause unnecessary disruption despite acknowledging the environmental issues raised.

Perkins, who has served on Woolworths’ board for 12 years, would extend his tenure to 15 years if re-elected. The opposition comes primarily from businessman and conservationist Geoff Cousins, along with ethical investment group SIX. Their campaign focuses on Woolworths’ role in sourcing salmon from Tasmania’s Macquarie Harbour, where commercial farming practices are believed to endanger the Maugean skate, a rare fish species native to the area.

Cousins, who has previously held high-profile corporate and governmental positions including as a Telstra director and adviser to former Prime Minister John Howard, has been a vocal critic of Woolworths and its rival Coles. He has raised allegations of possible collusion between the two supermarket chains regarding their approach to the environmental concerns, citing an alleged conversation between Perkins and Coles chairman Peter Allen. Cousins has also brought these claims to the attention of the Australian Competition & Consumer Commission (ACCC). However, the ACCC has stated it does not intend to investigate the matter further.

Last year, an advisory shareholder resolution on greater transparency in seafood sourcing received just over 34 percent support, signaling growing concern over Woolworths’ supply chain. Cousins and allies have since rallied shareholders holding a small fraction of Woolworths shares (0.0115 percent) to formally vote against Perkins’ reappointment and urged that a new chair be appointed should he retain his seat.

Their statement cited Woolworths’ disregard for extensive scientific evidence on the environmental risks posed by Macquarie Harbour salmon farming. Additional complaints related to labor practices, wages, reputation, and financial performance were viewed by some as secondary issues underpinning the broader environmental campaign.

Proxy advisory firm Glass Lewis acknowledged that the alleged coordination between Woolworths and Coles could cause some shareholders to question the judgment involved. Nevertheless, the firm concluded this did not represent a governance failure warranting Perkins’ removal. It noted that while Tasmanian salmon sourcing remains a contentious issue, it constitutes just one segment of Woolworths’ operations and is better addressed through ongoing engagement and sustainability initiatives rather than boardroom upheaval.

Glass Lewis also pointed out that while Perkins’ lengthy tenure could call his independence into question under some criteria, an external review commissioned by Woolworths confirmed his independence. With the company engaged in CEO succession planning and having recently added three new non-executive directors, the proxy advisers argued retaining Perkins supports board stability during this transition period.

Woolworths declined to comment on the upcoming shareholder vote. Geoff Cousins was contacted for comment but had not responded. The retailer is scheduled to release its first-quarter trading report Wednesday, which analysts expect to show robust sales growth nearly double that of Coles, which will release its own update on Friday.