Investor Environmental Health Network (IEHN)

Fracking on Proxy Ballots at Chevron and Exxon

Described as laggards for their failure to address investor concerns, the oil and gas giants face shareowner resolutions addressing environmental and social risks associated with hydraulic fracturing.

SocialFunds.com — Shareowners have filed 11 resolutions this year with oil and gas companies, requesting that they quantifiably measure and reduce the environmental and social impacts of hydraulic fracturing. The nature of the shareowner requests were honed in part last year when a coalition of institutional investors called on companies to observe the best practices set out in an Investor Guide issued by the Investor Environmental Health Network (IEHN) and the Interfaith Center on Corporate Responsibility (ICCR).

“We’re encouraging a corporate race to the top in adopting best practices,” Richard Liroff of IEHN said.

Also last year, a consortium of oil and gas companies engaged in hydraulic fracturing in Appalachia created the Recommended Standards and Practices for Exploration and Production of Natural Gas and Oil from Appalachian Shales.

One of the signatories to the document was Chevron, which as one of the 12 coalition members agreed to “strive to be responsible operators that conduct business in a transparent and sustainable manner, and openly communicate with stakeholders.” Chevron and the other members also asserted that the consortium’s “consensus-based approach…provides a roadmap to enhance transparency and regulatory compliance.”

But according to the resolution filed by ICCR members, “By their own language, these standards describe what companies ‘should do’ rather than what companies currently do or commit to doing.”

“Proponents suggest the report include specific data on emission reduction measures taken such as the number or percentage of ‘green completions’ and other low-cost emission reduction measures; systems to track and manage naturally occurring radioactive materials; the extent to which closed-loop systems for management of drilling residuals are used; the numbers of community complaints or grievances and portion open or closed; and quantifying the amounts of water used and the source for shale energy operations by region,” the resolution concluded.

“By its own admission Chevron knows what it should do, yet continues to drag its feet on implementation putting the health of millions of communities at great risk,” Sr. Nora Nash of the Sisters of St. Francis of Philadelphia said. “How does a company of its size and status justify this position?”

Exxon Mobil is not a member of the Appalachian consortium, but its subsidiary XTO Energy is and signed the Recommended Standards document. Exxon is also a target of a resolution addressing hydraulic fracturing. The resolution, co-filed by the New York City Pension Funds and As You Sow, includes requests similar to those made by ICCR members to Chevron.

“Exxon has repeatedly resisted calls that it provide investors with detailed information on its safety measures,” an As You Sow press release states.

“Exxon has repeatedly failed to measure the harms its fracking operations cause to air, water, and nearby communities, or any progress it is making towards reducing those harms,” said Danielle Fugere, As You Sow President. “Exxon shareholders need this information to make sound investment decisions.”

And New York City Comptroller John Liu, the trustee for the NYC Pension Funds, said, “Fracking carries significant concerns about poisoned drinking water, toxic chemical leaks, and explosions. Exxon Mobil says, ‘Don’t worry, we’ve got it covered’ and asks us to take it at its word. Until the company shows us hard data on what it has done to protect the public and environment, shareowners cannot be confident that the necessary safeguards exist.”

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This article is written by Robert Kropp and is published by SocialFunds.com at http://www.socialfunds.com/news/article.cgi/3756.html

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Shareowners Press on with Anti-Fracking Campaign

Nine oil and gas companies face shareowner resolutions this proxy season requesting quantitative reporting of risks associated with hydraulic fracturing and the management of fugitive methane emissions.

Socialstop frackinigFunds.com — Nine leading oil and gas companies—Cabot Oil and Gas, Chevron, Exxon Mobil, EOG Resources, ONEOK, Pioneer Natural Resources, Spectra Energy, Range Resources and Ultra Petroleum—face shareowner resolutions this proxy season requesting that they quantifiably measure and reduce the environmental and social impacts of hydraulic fracturing, according to Ceres.

The proposals on fracking were filed by a number of organizations, including As You Sow, Calvert Investments, Green Century Capital Management, New York City Office of the Comptroller, The Sisters of St. Francis of Philadelphia, and Trillium Asset Management. The resolution filed with Cabot by the New York State Common Retirement Fund has been withdrawn due to commitments on disclosure made by the company.

Since 2009, when shareowners filed the first of 21 resolutions that by 2010 had gained an unprecedented 40% support, concerns over the impacts of hydraulic fracturing, or fracking, have gone mainstream. Risks associated with contamination by toxic chemicals of community drinking water supplies, the disposal of massive volumes of wastewater, and increased air emissions have been widely covered in the media, threatening the social license to operate of companies engaged in the controversial practice.

Green Century, which filed this year’s resolutions with EOG Resources and Ultra Petroleum, coordinates a shareowner campaign on fracking with the Investor Environmental Health Network (IEHN). “Transparency is the first step, but oil and gas companies must now implement quantifiable plans to reduce the impact of their operations on the environment,” Leslie Samuelrich of Green Century said.

“State regulations do not provide adequate protection from the adverse effects of shale gas operations,” the resolution filed with EOG Resources states. “Shareholders request that the Board of Directors publish a set of systematic policies for tracking and responding to community concerns, reducing the use of toxic chemicals, disclosing violations, and reporting to shareholders, on an annual basis via quantitative indicators, the results of these policies.”

“Oil and gas firms face clear environmental and business risks, and general assurances of safety and anecdotes about site-specific actions are not sufficient for investors,” said Richard Liroff, Executive Director of IEHN. “Shareholders want to know how companies are systematically tackling environmental risk and community impact concerns and the measurable results of these efforts.”

Resolutions addressing fugitive methane emissions from the fracking process were filed with Range Resources, ONEOK, and Spectra Energy by Trillium Asset Management. “Given the high short-term climate impact of methane emissions, it is now an open question whether natural gas can serve as a bridge fuel to a more sustainable energy future,” said Natasha Lamb of Trillium. “Companies can and should reduce their emissions using new technologies with positive return on investment.”

Last year, an international coalition of institutional investors with $1 trillion in assets under management, led by IEHN, Boston Common Asset Management, and the Interfaith Center on Corporate Responsibility (ICCR) called for the adoption of best practices by corporations engaged in hydraulic fracturing. Also last year, an international coalition of institutional investment organizations with assets under management in excess of $20 trillion called on companies and governments to minimize methane emitted in the fracking process.

“The oil and gas industry must account for its impact on natural resources, the climate and communities,” said Mindy Lubber, director of the Investor Network on Climate Risk (INCR) and president of Ceres. “The environmental risks of fracking have bottom-line impacts, and investors are right to be demanding better performance from oil and gas firms.”

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This article was written by Robert Kropp and is published at http://www.socialfunds.com/news/article.cgi/3741.html

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