Support for shareholder proposal on methane emissions management at Kinder Morgan

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.

8 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
 NUMBER1.1PROPOSALElect Director Richard D. KinderMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.2PROPOSALElect Director Steven J. KeanMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.3PROPOSALElect Director Kimberly A. DangMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.4PROPOSALElect Director Ted A. GardnerMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.5PROPOSALElect Director Anthony W. Hall, Jr.MANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.6PROPOSALElect Director Gary L. HultquistMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.7PROPOSALElect Director Ronald L. Kuehn, Jr.MANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.8PROPOSALElect Director Deborah A. MacdonaldMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.9PROPOSALElect Director Michael C. MorganMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.10PROPOSALElect Director Arthur C. ReichsteerMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.11PROPOSALElect Director Fayez SarofimMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.12PROPOSALElect Director C. Park ShaperMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.13PROPOSALElect Director William A. SmithMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.14PROPOSALElect Director Joel V. StaffMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.15PROPOSALElect Director Robert F. Vagt MANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER1.16PROPOSALElect Director Perry M. WaughtalMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER2PROPOSALRatify PricewaterhouseCoopers LLP as Auditors MANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER3PROPOSALAdvisory Vote to Ratify Chief Executive Officer CompensationMANAGEMENT RECOMMENDATIONForVOTING INTENTIONFor
 NUMBER4PROPOSALAdvisory Vote on Say on Pay FrequencyMANAGEMENT RECOMMENDATIONThree yearVOTING INTENTIONThree year
Shareholder proposals for Annual General Meeting
 NUMBER5PROPOSALReport on Methane Emissions ManagementMANAGEMENT RECOMMENDATIONAgainstVOTING INTENTIONFor
 NUMBER6PROPOSALReport on SustainabilityMANAGEMENT RECOMMENDATIONAgainstVOTING INTENTIONFor
 NUMBER7PROPOSALAssess Portfolio Impacts of Policies to Meet 2 Degree ScenarioMANAGEMENT RECOMMENDATIONAgainstVOTING INTENTIONFor