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Harvard Management Company discusses challenges, opportunities for reducing methane emissions in oil and gas industry

Last month, we had the opportunity to speak about methane and ESG (Environmental, Social and Governance) investing with Michael Cappucci, Senior Vice President of Compliance and Sustainable Investing at Harvard Management Company (HMC). An early leader in ESG investing, HMC was the first U.S. university endowment to sign the UN-supported PRI ESG investing initiative in 2014.

HMC manages the university’s $37 billion endowment and believes ESG risks can have indirect and direct impacts on a company’s performance. Part of HMC’s work with Principles for Responsible Investment (PRI) includes co-leading a group of institutional investors examining the global efforts underway to limit methane emissions and the opportunities to increase their effectiveness. As HMC’s representative to that group, Michael explains below why methane is a risk for all investors and how far the industry has come in just a few short years. Read More »

Posted in Methane, Natural Gas / Comments are closed

Your investors are asking about methane risk: here's why, and what you can do

A version of this piece originally appeared in Petroleum Economist.

With the annual corporate shareholder meeting season coming to a close and the World Gas Conference around the corner, one thing is abundantly clear – investors are strengthening their stance on climate, and they want the oil and gas industry to step up and reduce methane emissions.

In an open letter in the Financial Times earlier this spring, investors overseeing more than $10.4 trillion wrote they are expecting the oil and gas industry to change how it operates and transition its operations and corporate strategy to a low-carbon economy. Read More »

Posted in Methane, Natural Gas / Comments are closed

Methane shareholder resolutions could yield big change, says investor

Oil and gas investor pressure is building, with 20 climate shareholder resolutions up for review at annual meetings held by publicly-traded energy companies this month. While the climate filings cover a range of issues, improved methane management is in the mix.

Last year was a breakout year for methane investor activism. ExxonMobil’s XTO Energy subsidiary business announced a reduction plan in response to a 2017 methane disclosure resolution, with onlookers expecting more change to follow this year from others. Meanwhile, a growing global network representing 36 investors and $4.2 trillion in managed assets continue to call on companies for methane reductions.

In the second-part of our interview series with Jamie Bonham, Manager of Corporate Engagement at NEI, we talk about how influential Environment, Social and Governance (ESG) shareholder resolutions, such as methane, have been in the past. We also discuss what prompts investors to file resolutions, and the potential impact on companies.

Read More »

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Investors: Methane targets wanted

With upcoming annual meetings full of shareholder resolutions calling on companies to set greenhouse gas (GHG) reduction targets, EDF released "Taking Aim", a new paper explaining why methane targets are the next frontier for the oil and gas industry and establishing five keys for strong targets. The paper explains how companies that set targets are more likely to be successful when it comes to securing methane emission reductions. Setting targets also demonstrates to investors that corporate decision makers understand methane risk management is critical to competing in an ever-cleaner energy market.

With the Task Force for Climate-Related Financial Disclosure (TCFD) framework also highlighting the importance of targets, “Taking Aim” provides some initial guidelines that can help frame what an ambitious, leading target looks like for oil and gas industry methane.

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Posted in Methane, Natural Gas / Comments are closed

Methane a potential blind spot for Canadian oil and gas industry, says investor

While a growing number of global oil and gas companies step up to reduce methane emissions, many operators in Canada have hesitated to take concrete action, perhaps waiting instead for federal and provincial regulations to address the issue.

EDF’s Sean Wright recently sat down with Jamie Bonham, Manager of Corporate Engagement at NEI, a Canadian investment firm based in Toronto with $6 billion in assets under management. Bonham is concerned many Canadian operators do not understand the full scope of their oil and gas methane problem, but says there is considerable opportunity for Canadian companies to exert leadership.

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Four takeaways for investors from methane disclosure report

Two big developments this month suggest that investor interest in climate-related financial risk is at an all-time high. The first is Climate Action 100+, a new initiative led by Ceres and 225 investors with more than $26.3 trillion in assets under management to strengthen climate-related financial disclosures among the world’s largest corporations.

As investors work to increase reporting on climate risk, methane emissions will be top of mind. Methane, the main component of natural gas, is 84 times more potent than carbon dioxide when released to the atmosphere over a 20-year period – and is responsible for 25 percent of the warming we’re experiencing today. Read More »

Posted in General, Methane, Natural Gas / Comments are closed