Support for shareholder proposal on methane emissions management at Kinder Morgan
8 May 2018
Norges Bank Investment Management will vote in favour of the shareholder proposal on methane emissions management, and all other resolutions put forth to shareholder approval at the Annual General Meeting of Kinder Morgan Inc on 9 May 2018.
Our rationale
We will support the shareholder resolution asking for a report reviewing Kinder Morgan Inc’s policies, actions and plans to measure, monitor, mitigate, disclose and set quantitative reduction targets for methane emissions from all operations, including storage and transportation.
We encourage companies to integrate material climate change challenges and opportunities in their business management. Companies engaged in activities with large greenhouse gas emissions or intensities, including fugitive methane emissions, should have a strategy addressing a transition to a low-emissions energy system and should develop a framework to monitor such emissions.
We encourage the transparent disclosure of material greenhouse gas emissions to appropriate, internationally recognised reporting initiatives to better enable investors to analyse climate-related risks and opportunities. For example, the supplemental guidance of the Task Force on Climate-related Financial Disclosures (TCFD) encourages companies in the energy sector to disclose fugitive emissions. Benchmarks and targets, and performance against these, should be quantified where relevant.
Our expectations on climate change strategy
Kinder Morgan Inc resolutions
| NUMBER | PROPOSAL | MANAGEMENT RECOMMENDATION | VOTING INTENTION |
|---|---|---|---|
| Management proposals for Annual General Meeting | |||
| 1.1 | Elect Director Richard D. Kinder | For | For |
| 1.2 | Elect Director Steven J. Kean | For | For |
| 1.3 | Elect Director Kimberly A. Dang | For | For |
| 1.4 | Elect Director Ted A. Gardner | For | For |
| 1.5 | Elect Director Anthony W. Hall, Jr. | For | For |
| 1.6 | Elect Director Gary L. Hultquist | For | For |
| 1.7 | Elect Director Ronald L. Kuehn, Jr. | For | For |
| 1.8 | Elect Director Deborah A. Macdonald | For | For |
| 1.9 | Elect Director Michael C. Morgan | For | For |
| 1.10 | Elect Director Arthur C. Reichsteer | For | For |
| 1.11 | Elect Director Fayez Sarofim | For | For |
| 1.12 | Elect Director C. Park Shaper | For | For |
| 1.13 | Elect Director William A. Smith | For | For |
| 1.14 | Elect Director Joel V. Staff | For | For |
| 1.15 | Elect Director Robert F. Vagt | For | For |
| 1.16 | Elect Director Perry M. Waughtal | For | For |
| 2 | Ratify PricewaterhouseCoopers LLP as Auditors | For | For |
| 3 | Advisory Vote to Ratify Chief Executive Officer Compensation | For | For |
| 4 | Advisory Vote on Say on Pay Frequency | Three year | Three year |
| Shareholder proposals for Annual General Meeting | |||
| 5 | Report on Methane Emissions Management | Against | For |
| 6 | Report on Sustainability | Against | For |
| 7 | Assess Portfolio Impacts of Policies to Meet 2 Degree Scenario | Against | For |
