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National Oilwell Varco Sustainability Report GHG 2011

We believe that sustainability 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, develop company~wide communications, publicize innovative practices and receive feedback.
Many companies are preparing sustainability reports which provide disclosure on how they are positioning themselves to be viable long-term investments. According to a 2008 KPMG report on sustainability reporting, of the 250 Global Fortune companies, 79% produce reports compared to 52% in 2005. Of the 100 top U.S. companies by revenue, 73% produce reports compared to 32% in 2005. Increasingly, companies are identifying ESG factors relevant to their business and addressing them strategically through sustainability programs and reports.
The Carbon Disclosure Project (CDP), representing 534 institutional investors globally with $64 trillion in assets, annually requests disclosure from companies on their climate change management programs. Companies are increasingly providing this climate change disclosure. The response rate to the 2010 CDP for the S&P 500 was 70%, compared to a response rate of 47% to the 2006 survey.
Transparency on climate change is particularly crucial as it is one of the most financially significant environmental issues currently facing investors. The Intergovernmental Panel on Climate Change’s 2007 report observed that, “taken as a whole, the range of published evidence indicates that the net damage costs of climate change are likely to be significant and increase over time.”
According to National Oilwell Varco’s 2009 annual report, the company acknowledges that its current and past activities could result in substantial environmental, regulatory and other liabilities. In this report the company also acknowledges that they may not have adequate insurance for potential environmental liabilities. »
In the 2010 Newsweek Green Rankings, National Oilwell Varco ranked 375 out of 500 U.S. companies that were considered and ranked 20 out of the 29 U.S. Oil and Gas companies that were considered.
National Oilwell Varco did not respond to the 2010 CDP survey.
National Oilwell Varco has not prepared a sustainability report, or any similar report.
Shareholders believe that National Ollwell Varco has not provided adequate disclosure of its ESG risk exposure and its ESG risk management efforts.

Shareholders request that the Board of Directors issue a report describing the company’s short - and longterm responses to ESG-related issues and the associated risks, including greenhouse gas emissions data and plans to manage emissions. The report should be prepared at reasonable cost, omitting proprietary information, and made available to shareholders by November 30, 2011.