EOG Resources Energy Efficiency Report 2014
|Company||EOG Resources, Inc.|
|Filer||California State Teachers' Retirement System|
|Sector||Oil and Gas|
|Subject(s)||Energy Efficiency (industrial); Greenhouse Gas Emissions|
|Resolved Clause Summary||Report on Energy Efficiency Strategies|
|Status||Withdrawn; Company will address|
We believe that reporting on environmental, social and governance (ESG) business practices makes a company more responsive to the global business environment, an environment with finite natural resources, evolving legislation, and increasing public expectations of corporate behavior. Reporting also helps companies better integrate and gain strategic value from existing corporate social responsibility efforts, identify gaps and opportunities in operations, publicize innovative practices and receive feedback.
Companies are increasingly committing to energy efficiency initiatives as part of their sustainability and social responsibility efforts. KPMG’s 2011 “Corporate Sustainability: A Progress Report,” indicated that 62% of the 378 global companies surveyed have sustainability strategies in place, and that energy efficiency is a primary focus with regard to environmental aspects of sustainability, with 72% of surveyed companies engaged in efforts to improve energy efficiency. Moreover, companies are increasingly providing reports and information on ESG issues relating to energy efficiency and corporate sustainability. KPMG’s same report noted that as of 1996, approximately 300 companies worldwide produced sustainability reports, and by 2010, over 3,000 companies produced sustainability reports. Ernst & Young’s 2013 “Value of sustainability reporting” noted that “95% of the Global 250 issue sustainability reports,” and that “thousands of companies around the world issue sustainability reports, and the number of companies reporting grows every year.” Today, Bloomberg collects and provides ESG data on over 220 indicators, and notes that the supply of such data has increased from 1,000 companies to 6,000 since 2009.
Evidence linking environmental considerations such as energy efficiency and value creation is also increasingly being seen. An October, 2010 report from Thomson Reuters (ESG and Earnings Performance) concluded that, “U.S. companies with stronger ESG (environmental, social and governance) scores consistently beat earnings estimates more frequently than those with lower scores.” And according to an October 4, 2011 report from Goldman Sachs (Why ESG Matters), “Firms with leading ESG scores tend to generate higher and more durable returns on capital than sector peers.” More recently, Ernst & Young’s 2013 “Value of sustainability reporting” stated that sustainability disclosure “is a best practice employed by companies worldwide,” and that benefits from such reporting include improved access to capital and increased efficiency and waste reduction.
EOG Resources has not provided adequate disclosure, in public filings, on its website, or through a report, that discusses the Company’s energy management strategy.
Shareholders request that the Board of Directors issue an energy efficiency report describing the company’s short- and long-term strategies on energy use management. The requested report should include a company-wide review of the policies, practices, and metrics related to EOG Resources’ energy management strategy. The report should be prepared at reasonable cost, omitting proprietary information, and made available to shareholders by December 31, 2014.