Hydraulic Fracturing Advocacy Yields Wins
Calvert’s engagements with Pioneer Natural Resources Company and QEP Resources end with commitments to improve disclosure
As the 2014 proxy season approaches, Calvert has withdrawn a shareholder proposal and avoided filing another regarding hydraulic fracturing following commitments by Pioneer Natural Resources Company and QEP Resources to improve disclosures and continue engagement.
The proposals sought quantitative and qualitative disclosures of how each company manages key challenges related to onshore conventional oil and gas development, such as water use and emissions reduction. Calvert looks forward to using the resulting disclosures to better understanding how Pioneer and QEP are managing opportunities and risks and believes the companies will benefit from collecting and analyzing this increasingly important information.
“Calvert’s engagement with both Pioneer and QEP resulted in two great outcomes,” Paul Bugala, Senior Sustainability Analyst, Extractive Industries at Calvert Investments, said. “First, investors will get material information about how each can manage hydraulic fracturing and, second, the companies will continue to collect and share the information necessary to measure and manage their operations efficiently and sustainably.”
The engagements with Pioneer and QEP are the most recent evidence of Calvert’s commitment to push for best practices in the development of oil and gas by companies throughout our portfolios. During the 2013 proxy season, Calvert also withdrew proposals regarding disclosure and Board-level sustainability oversight following successful engagement with Cameron International, Denbury Resources, Energen Corporation, EOG Resources, Range Resources, and Whiting Petroleum. Improving hydraulic fracturing-related disclosure is also a key objective of engagement with ConocoPhillips, Devon Energy, ExxonMobil, Marathon Oil, and Royal Dutch Shell as part of the Calvert SAGE™ Strategies.
In addition to our direct advocacy, Calvert has advised its proxy advisory service to vote for shareholder proposals requesting greater disclosure of a company’s hydraulic fracturing operations and joined investor collaborations calling for greater disclosure regarding unconventional onshore oil and gas development, such as the United Nations Principles for Responsible Investing working group on hydraulic fracturing.