WHEREAS: Climate change is one of the defining challenges of the 21st century and presents both financial risks and opportunities to companies.

Greenhouse gas emissions (GHG) stemming from human activities are driving a rise in mean temperatures. This is affecting human health and well-being as well as the natural environment and poses significant risks to the global economy. Companies’ economic prospects are affected by technological developments, regulatory changes, and the physical consequences of a changing climate.

As one of the largest energy infrastructure companies in North America, Kinder Morgan, Inc.’s operations and products contribute to significant GHG emissions. In its 2022 Form 10-K, the company states that “climate-related risks and related regulation could result in significant increased operating and capital costs for us and could reduce demand for our products and services”.1

Over the last several years, Kinder Morgan has begun reporting on climate risks and opportunities, including reporting its scope 1 and 2 emissions, and has set a methane emission intensity target, as members of the ONE Future initiative. Proponents recognise the existing efforts and methane target but believe that the establishment of an emission reduction target covering the company’s scope 1 and 2 GHG emissions is needed to provide investors with a better understanding of how the company can adapt its operations to a low carbon economy.

Enbridge Inc., TC Energy Corporation and The Williams Companies, Inc., Kinder Morgan’s self-selected peers, have set emission reduction targets covering scope 1 and 2 emissions.