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