Anadarko Shareholders Stun With Majority Vote For Resolution Requesting Climate Change Accountability

Recently, a majority of Anadarko shareholders voted in favor of an As You Sow proposal asking the Company to assess the risks to its portfolio of scenarios consistent with limiting global warming to 2 degrees Celsius or below, as defined in the Paris Agreement. Shareholders have signaled a need to understand how Anadarko will retain its value in an increasingly low carbon energy market.

This majority vote follows high 2018 shareholder votes for proposals filed by As You Sow at Emerson, Entergy, and Noble Energy (39%, 29.9%, and 45.7%, respectively) on climate related issues. Investors have been growing increasingly concerned about energy company assets that may become stranded. In Anadarko’s case, a recent analysis of oil and gas carbon asset risk found that 20 to 30% of the Company’s potential capital expenditure is outside of the 2-degree budget.

Anadarko’s shareholders asked not only that Anadarko undertake the requested scenario analysis, but also that it discuss what assumptions were made in such analysis, what type of resources might be impacted, and to what degree. Anadarko has fallen significantly behind its peers in reporting on this issue. A broad range of companies, including Chevron and Occidental, have already tested their capital planning decisions against carbon constrained scenarios, and reported to shareholders on the outcomes. Although these reports are not perfect, they are providing some important information to shareholders.

“This majority vote is a victory not only for shareholders, but for Anadarko itself,” said Danielle Fugere, president of As You Sow. “The speed of technological advancements in low carbon energy, as well as global governments’ increasing focus on reducing greenhouse gas emissions require that Anadarko ready itself for a rapidly changing energy market. The company’s investors have stated plainly that they cannot weather this kind of risk without transparency.”

Anadarko’s investors have grown increasingly concerned with the company’s carbon asset risk in recent years. In 2016, 42% of investors voted for a similar proposal, up from 30% in 2014.

“Investors are holding energy companies accountable for defining a path forward in this changing energy future,” added Fugere. “We know that carbon emissions eventually need to move to zero to limit global warming below 2 degrees. We look forward to working with Anadarko to both mitigate its climate change impact and ensure that shareholders and the Company continue to prosper in this evolving economy.”

As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. See our resolutions here.Recently, a majority of Anadarko shareholders voted in favor of an As You Sow proposal asking the Company to assess the risks to its portfolio of scenarios consistent with limiting global warming to 2 degrees Celsius or below, as defined in the Paris Agreement. Shareholders have signaled a need to understand how Anadarko will retain its value in an increasingly low carbon energy market.

This majority vote follows high 2018 shareholder votes for proposals filed by As You Sow at Emerson, Entergy, and Noble Energy (39%, 29.9%, and 45.7%, respectively) on climate related issues. Investors have been growing increasingly concerned about energy company assets that may become stranded. In Anadarko’s case, a recent analysis of oil and gas carbon asset risk found that 20 to 30% of the Company’s potential capital expenditure is outside of the 2-degree budget.

Anadarko’s shareholders asked not only that Anadarko undertake the requested scenario analysis, but also that it discuss what assumptions were made in such analysis, what type of resources might be impacted, and to what degree. Anadarko has fallen significantly behind its peers in reporting on this issue. A broad range of companies, including Chevron and Occidental, have already tested their capital planning decisions against carbon constrained scenarios, and reported to shareholders on the outcomes. Although these reports are not perfect, they are providing some important information to shareholders.

“This majority vote is a victory not only for shareholders, but for Anadarko itself,” said Danielle Fugere, president of As You Sow. “The speed of technological advancements in low carbon energy, as well as global governments’ increasing focus on reducing greenhouse gas emissions require that Anadarko ready itself for a rapidly changing energy market. The company’s investors have stated plainly that they cannot weather this kind of risk without transparency.”

Anadarko’s investors have grown increasingly concerned with the company’s carbon asset risk in recent years. In 2016, 42% of investors voted for a similar proposal, up from 30% in 2014.

“Investors are holding energy companies accountable for defining a path forward in this changing energy future,” added Fugere. “We know that carbon emissions eventually need to move to zero to limit global warming below 2 degrees. We look forward to working with Anadarko to both mitigate its climate change impact and ensure that shareholders and the Company continue to prosper in this evolving economy.”

As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. See our resolutions here.