Outcome: Successfully Withdrawn
Anadarko’s operates in four countries worldwide that have ratified the Kyoto Protocol, which obliges industrialized countries to reduce national greenhouse gas (GHG) emissions below 1990 levels by 2012, and provides financial incentives for non-industrialized participants to reduce their GHG emissions.
Since Kyoto was adopted, the urgent need for action to prevent the most damaging effects of climate change has become increasingly clear. To avoid the most dangerous impacts of climate change, experts believe that we must hold CO2 emissions at or near 2004 levels for the next 50 years, but emissions are continuing to rise.
British finance minister Gordon Brown says the EU should aim to reduce its carbon dioxide (CO2) emissions by 30% below 1990 levels by 2020 and by at least 60% by 2050; the UK’s reduction target, under Kyoto, is just 12.5% by 2012.
The 2006 Stern Review on the Economics of Climate Change, lead by the former chief economist at the World Bank, “… estimates that if we don’t act, the overall (worldwide) costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever.” In contrast, the costs of action would be about 1% of global GDP each year. While some may criticize this scenario, Nobel Prize economists have applauded this work, urging immediate responses.
Anadarko’s measures to reduce greenhouse gas emissions include the use of carbon sequestration as part of enhanced oil recovery operations and working to minimize the flaring and venting of methane gas. However, in 2005 (the latest figures available, which pre-date the Kerr-McGee and Western Resources acquisitions), Anadarko’s direct GHG emissions from Anadarko operations totaled 4.9 million metric tons of CO2 equivalent.
Shareholders request that the Board of Directors publicly adopt quantitative goals, based on current and emerging technologies, for reducing total greenhouse gas emissions from the company’s products and operations below 2004 levels; and that the company report to shareholders by September 30, 2007, on its plans to achieve these goals. Such a report will omit proprietary information and be prepared at reasonable cost.
Anadarko’s web site states: “We continually look for innovative ways to minimize the overall environmental impacts of our activities, including reduction of greenhouse gas emissions….In our view, it’s possible to achieve reductions in greenhouse gas emissions in a cost-effective and voluntary manner.” Anadarko’s Greenhouse Gas Management Plan (http://www.anadarko.com/PDF/GHG_Managment_Plan_exec_summary.pdf) commits our company to “continually improving its performance in [this] area by…Setting corporate objectives and targets and communicating the progress and overall performance in achieving those objectives and targets.”
However, Anadarko has yet to report publicly on its objectives and targets, its progress toward meeting them. A vote in support of this proposal will register interest in holding Anadarko accountable to its pledge to set GHG reduction targets and communicate their progress and performance.