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KMI Shareholders Call for Greater Sustainability Disclosure

May 07, 2018

Ahead of Kinder Morgan (NYE: KMI) Shareholder Meeting, Renowned Proxy Advisory Firm Backs Shareholder Resolution Calling for Sustainability Reporting

HOUSTON -- On Wednesday, May 9rd, at Kinder Morgan’s Annual General Meeting of shareholders, Chief Judy Wilson, Neskonlith Indian Band (Secwepemc Nation) will present a shareholder resolution calling for an annual sustainability report, allowing companies to publicize and gain strategic value from existing sustainability efforts and identify emerging risks and opportunities.

The resolution, filed on behalf of  the New York State Common Retirement Fund argues that environmental, social and governance (ESG) issues can pose significant risks to business, and without proper disclosure, stakeholders and analysts cannot ascertain whether the company is managing its ESG exposure. As an example, the resolution points out that opposition to Kinder Morgan’s Trans-Mountain Pipeline from Canadian and Indigenous and community groups has already delayed Kinder Morgan’s operations to 2019.



Ahead of KMI’s annual general meeting of shareholders, influential proxy advisory firm Institutional Shareholder Services has come out in support of a shareholder resolution calling for the company to increase sustainability disclosure.  ISS explained that:

"KMI discloses some information that would generally be included in a sustainability report on its Environmental, Social & Governance (ESG) / Sustainability website and in its EHS policies and practices. … KMI's disclosures, however, do not provide comprehensive information around its ESG strategies, processes, and targets as recommended by the Global Reporting Initiative. Moreover, its policies pertaining to human rights are not aligned with international standards like the UN Declaration on the Rights of Indigenous Peoples.

Shareholders would benefit from disclosure regarding the company's sustainability policies and practices, including disclosure of quantitative data commonly included in corporate sustainability reports, such as metrics and goals regarding GHG emissions and energy use. Regular reporting on progress toward targets would give shareholders information about how sustainability issues were being managed.

Greater disclosure on its ESG-related policies and practices would allow shareholders to more fully assess KMI's sustainability performance and mitigation of related risks and opportunities. Therefore, this proposal warrants shareholder support."

Nearly 1,300 SumOfUs members used the organization’s OurPension tool to contact their pension fund managers and urge them to support the shareholder resolution.