Targa Resources Corp | Direct Measurement of Methane Emissions at Targa Resources Corp

AGM date
Previous AGM date
Resolution details
Company ticker
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Methane
Type of vote
Shareholder proposal
Filer type
Company sector
Company HQ country
United States
Resolved clause
Resolved, shareholders request that Targa issue a report analyzing the reliability of its methane emission disclosures, as reliability is crucial to adequate methane management and therefore a critical concern for investors assessing climate-related risks. The report should:
be made public, omit proprietary information, and be prepared expeditiously at reasonable cost;summarize the results of Targa’s efforts to directly measure methane emissions, using recognized frameworks such as OGMP;describe any material difference between direct measurement results and Company’s reported methane emissions; andassess the degree to which any differences would alter estimates of the Company’s Scope 1 emissions.
Whereas clause
Whereas, methane is at least 80 times more potent than carbon dioxide over a 20-year period, and cutting methane is the strongest lever we have to slow climate change over the next 25 years.[1] In 2020, 32% of anthropogenic U.S. methane emissions came from natural gas and petroleum systems.[2]
Methane emissions can be quantified directly through measurement, or indirectly through calculations and modelling. The Environmental Protection Agency’s reliance on the latter methodology fails to capture many major leaks, which are associated with the loss of product worth $2 billion per year.[3] Studies have found actual emissions to be 50 to 100% higher than reported emissions.[4] In certain basins, actual emissions are more than 10 times industry-disclosed figures.[5] These gaps suggest oil and gas industry Scope 1 emissions may be significantly higher than currently reported.
Reporting accuracy improves when direct measurement methodologies are used to identify and measure emissions by source type and to reconcile them with the site or facility level, as shown by the Oil and Gas Methane Partnership 2.0 (OGMP).[6]
Investors and governments are setting expectations for methane management: In 2021, investors managing over $6 trillion supported strong federal methane regulations. The U.S. joined the Global Methane Pledge, committing to using best available methodologies to quantify methane emissions. Companies across the world – including Cheniere, ConocoPhillips, and Occidental – are meeting these expectations by joining OGMP, thereby committing to improving methane data quality and consistency.[7]
Companies that do not accurately measure and manage methane emissions risk their reputations and licenses to operate.
Targa has taken some steps (e.g., membership in ONE Future and EPA’s Natural Gas STAR Program, methane aerial surveys on its Permian assets, participation in the Environmental Partnership’s aerial surveys[8]), but it fails to use and report on direct methane measurement across all operations.
Supporting statement
Supporting Statement:
At management’s discretion, we recommend that the report describe:
the types of source- and site-level measurements used;plans to improve emission estimates over time, consistent with frameworks such as OGMP;any material difference between third-party direct measurements results and Company’s reported methane emissions, by site or region; andplans to validate emissions estimates and disclosure via third-party audit or evaluation. 
[1] https://www.ccacoalition.org/sites/default/files/press/GMA%20Press%20Release%20FINAL.pdf
[2] https://www.epa.gov/ghgemissions/overview-greenhouse-gases
[3] https://www.edf.org/climate/methane-studies
[4] https://www.seas.harvard.edu/news/2021/03/oil-and-natural-gas-production-emit-more-methane-previously-thought, https://www.nature.com/articles/s41467-021-25017-4
[5] https://business.edf.org/files/Investors-Guide-to-the-OGMP_09.17.21_FINAL.pdf
[6] Ibid.
[7] http://ogmpartnership.com/partners
[8] https://www.targaresources.com/static-files/fc7c9303-bf39-45f9-82e1-00fa111057ef

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