May 09, 2018
More than 50% of Kinder Morgan (NYE: KMI) Shareholders Back Shareholder Resolution Calling for Sustainability Reporting
HOUSTON -- At Kinder Morgan’s Annual General Meeting of shareholders, over 50% of shareholders voted for the resolution filed on behalf of the New York State Common Retirement Fund calling for greater sustainability disclosure.
The resolution, presented by Chief Judy Wilson, Neskonlith Indian Band (Secwepemc Nation) argued 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. 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.
Today’s vote exceeds last year’s 34.1 per cent support in part because the resolution was backed by the $457-billion California Public Employees’ Retirement System, and Norway’s $1.3-trillion Government Pension Fund Global.
In response to the news, Chief Judy Wilson said, “Kinder Morgan shareholders are seeing the reality of the risk and uncertainty they are facing through the Trans Mountain expansion through unceded territory and the changes in the political landscape with the implementation on the UN Declaration on the Rights of Indigenous Peoples that prioritizes free, prior and informed consent.”
Lisa Lindsley, Capital Markets Advisor at SumOfUs said: “Investors have spoken regarding the inextricable link between sustainability and shareholder value, and this is a victory for long-term investors in Kinder Morgan.”
Eugene Kung, of West Coast Environmental Law added: “The doomed Trans Mountain Expansion Project is a perfect example of why investors should be paying close attention to the risk and uncertainty facing projects that do not have the consent of communities.”
VIEW THE SHAREHOLDER PROPOSAL HERE: