KINDER MORGAN, INC. | Adopt GHG reduction targets at KINDER MORGAN, INC.

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
KMI US
Lead filer
Presbyterian Church
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Utilities
Company HQ country
United States
Resolved clause
Shareholders request Kinder Morgan issue, within a year, short, medium and long-term operational GHG reduction targets aligned with the Paris Agreement’s ambition to limit global temperature rise to 2 degrees Celsius while pursuing efforts to limit the increase even further to 1.5 degrees, and summarize plans to achieve them.
Whereas clause
The Intergovernmental Panel on Climate Change (IPCC) advises that greenhouse gas (GHG) emissions must fall 45 percent by 2030 and reach net zero by 2050 to limit warming to 1.5 degrees Celsius and prevent the worst climate impacts.[1]
Midstream companies play an important role in delivering oil and gas and associated products and thus are highly exposed to climate risks. Considerable pressure from investors, policymakers, and society to transition to a low-carbon future is prompting upstream producers and downstream consumers to act, impacting midstream companies. Understanding how companies are positioned to adapt over the coming decades is critical to investors’ analysis of the salient risks and long-term investment value that they will deliver. Many jurisdictions, companies, and financial institutions are committing to net-zero by mid-century, which will dramatically transform the utility of fossil infrastructure. Company strategies guided by a net zero path will avoid future stranded assets and loss of economic value.
Kinder Morgan, the largest energy infrastructure firm in the S&P 500, is highly exposed to climate risk. Revenues are derived largely from high-emitting fossil fuel products. Efforts to reduce global carbon emissions will challenge the future of those revenues as markets shift to low carbon products. We applaud the Company’s evaluating the baseline emissions for scopes 1 & 2 as well as improved monitoring processes. Clear and ambitious targets set for these operational emissions, where the Company has the most influence, would indicate that the Company is on a meaningful path for emissions reductions.
Kinder Morgan severely lags peers Enbridge and TC Energy who have both set operational net zero and interim GHG reduction targets. Royal Dutch Shell, BP, and Equinor are examples of oil and gas companies that have announced ambitious targets to reduce emissions and align capital spending and business activities with the goals of the Paris Agreement.
Investors hope to see Kinder Morgan remain competitive during the energy transition. Setting GHG targets gives investors confidence that Kinder Morgan is planning for expected changes in market conditions.
Supporting statement
In assessing targets, we recommend, at the board’s discretion:
• Pursuing alignment with internationally recognized 1.5 degree aligned pathways such as those outlined by the IPCC or International Energy Agency (IEA);
• Considering both intensity and absolute targets;
• Considering sector-specific target setting guidance developed by groups like Transition Pathway Initiative[1];
• Developing a climate transition plan which identifies and quantifies the set of actions Kinder Morgan intends to take to achieve its GHG reduction targets over the targeted timeframe.

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