Cabot Oil & Gas Sustainability Report 2012
|Company||Cabot Oil & Gas Corporation|
|Filer||Miller/Howard Investments, Inc.|
|Sector||Oil and Gas|
|Subject(s)||Greenhouse Gas Emissions; Sustainability Reporting; Water Pollution; Water Scarcity|
|Resolved Clause Summary||Sustainability report|
|Supporting Memo||Download PDF|
WHEREAS: We believe tracking and reporting on environmental, social and governance (ESG) business practices makes a company more responsive to a global business environment which is characterized by finite natural resources, changing legislation, and heightened public expectations for corporate accountability. Reporting also helps companies better integrate and gain value from existing ESG / sustainability efforts, identify gaps and opportunities in products and processes, publicize innovative practices, and recruit and retain employees.
Corporate reporting on sustainability is quickly becoming common practice. 79% of Fortune Global 500 companies produce sustainability reports; more than three out of four of these reports are based on the Global Reporting Initiative (GRI) Guidelines. In 2010, approximately 20% of U.S. Fortune 500 companies issued reports using the GRI framework, up from only 5% in 2006, according to the Governance and Accountability Institute.
The Carbon Disclosure Project (CDP), representing 551 institutional investors globally with $71 trillion in assets, has for years requested greater disclosure from companies on their climate change management programs. Over 3,000 organizations in some 60 countries around the world now measure and disclose their greenhouse gas emissions, water management and climate change strategies through CDP, in order that they can set reduction targets and make performance improvements.
We are concerned that Cabot Oil & Gas Corporation may be falling behind its peers in disclosure and management of ESG issues. Companies like Chevron and Apache Corporation already offer shareholders much of this important information through annual, GRI-based sustainability reports and by responding to the CDP.
Today, comprehensive ESG data on individual companies appears on Bloomberg terminals used by thousands of institutional investors around the world, including signatories to the Principles for Responsible Investment (PRI). PRI launched in 2006 and now has over 900 institutional signatories who collectively manage approximately $25 trillion, and who publicly pledge to “incorporate ESG issues into investment analysis and decision-making processes,” and to “ask for standardized reporting on ESG issues (using tools such as the Global Reporting Initiative).”
Furthermore, in January 2010, the SEC issued interpretive guidance clarifying that companies should disclose material risks associated with climate change. The sustainability reporting process can help companies to analyze and mitigate these risks.
RESOLVED: Shareholders request that the Board of Directors prepare a sustainability report describing the company’s short- and long-term responses to ESG-related issues, including plans to manage greenhouse gas (GHG) emissions, policies and initiatives that address environmental impacts of operations, disclosure of material water risks, and plans to mitigate those risks. The report, prepared at reasonable cost and omitting proprietary information, should be published and made available to the public by the end of 2012.
SUPPORTING STATEMENT: We encourage the use of the GRI Guidelines (G3). The GRI (www.globalreporting.org) is a globally accepted reporting framework considered the gold standard of reporting. The GRI also provides a flexible reporting system that allows companies to report incrementally over time.