Norway's wealth fund to urge US firm Kinder Morgan to reduce methane emissions

Kinder Morgan owns and controls oil and gas pipelines and terminals in North America. PHOTO: REUTERS

OSLO (REUTERS) - Norway's US$1 trillion (S$1.34 trillion) sovereign wealth fund said on Tuesday (May 8) it would support a resolution to be presented at Kinder Morgan's annual general meeting calling on the US energy infrastructure firm to reduce its methane emissions.

The world's largest sovereign wealth fund is seeking to get the 9,000 firms it invests in to disclose non-financial data, including on carbon emissions, and to stress tests their businesses against the risks posed by climate change.

"We will support the shareholder resolution asking for a report reviewing Kinder Morgan's policies, actions and plans to measure, monitor, mitigate, disclose and set quantitative reduction targets for methane emissions from all operations, including storage and transportation," it said in a statement.

Kinder Morgan owns and controls oil and gas pipelines and terminals in North America.

The motion is one of three motions to be presented by some shareholders of Kinder Morgan that the fund will support and that Kinder Morgan's management opposes, fund data shows.

The other two are shareholder proposals for the firm to have a report on sustainability and another for it to assess the impact on its portfolio of policies to limit a rise in global average temperatures to 2 degrees Celsius (3.6 degrees Fahrenheit).

The fund has a stake of 0.87 per cent in Kinder Morgan valuing it at US$352 million at end-2017. It rarely discloses its voting intentions ahead of time.

The fund, which invests the proceeds from Norway's oil and gas production for future pensions in stocks, bonds and real estate abroad, is one of the world's biggest shareholders, with stakes totalling 1.4 per cent of all listed companies.

Join ST's Telegram channel and get the latest breaking news delivered to you.