This article was originally published in Petroleum Economist.
With the corporate annual shareholder 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.
In the past three years, nearly 40 methane shareholder resolutions have been filed, and it doesn’t require a crystal ball to know that more are coming. This year’s shareholder season included 11 methane issue resolutions; eight were withdrawn (meaning the companies took action on their own without a vote). Chevron shareholders generated a 45 percent vote in favor of a methane resolution, and Range Resources’ resolution passed with a majority vote, while Kinder Morgan garnered a strong 38 percent shareholder vote.