Kinder Morgan (KMI) Faces Timely Push From Shareholders For Climate Risk Report

BOSTON and COLORADO SPRINGS, Colo., May 9, 2016 /PRNewswire/ -- On Tuesday (May 10th), Kinder Morgan (KMI) shareholders will vote on a resolution from Colorado-based First Affirmative Financial Network calling on the energy infrastructure company to prepare a report analyzing the consistency of its capital expenditure strategies in the context of growing international pressure to deal with climate change. As the largest energy infrastructure company in North America, and owner of tens of thousands of miles of pipeline, KMI is arguably more vulnerable to climate-related risks than many other energy companies.

Resolution 3 calls for an analysis of long- and short- term financial risks to KMI associated with transporting high production-cost fossil fuels in low-demand scenarios, as well as analysis of options to mitigate related climate risks and harms. Institutional Shareholder Services (ISS) has recommended a vote in favor of this resolution. The full text of the First Affirmative Financial Network resolution is available online at http://www.ceres.org/investor-network/resolutions/kinder-morgan-carbon-asset-risk-2016.

First Affirmative Financial Network President Steve Schueth said: "Fossil fuel and related infrastructure companies are faced with substantial headwinds in both the short and long-term. Any regulatory, market, or consumer actions taken to comply with the Paris climate agreement is likely to impact Kinder Morgan. The current state of the coal industry illustrates our concern. Recent bankruptcies of Arch and Peabody, for example, have led to the cancellation of shipping agreements with Kinder Morgan. While this has had only a relatively minor impact so far on the company's earnings, prudent investors are concerned about the long-term risks here."

Holly Testa, Director of Shareowner Engagement at First Affirmative, said: "The rapid decline of the coal industry may signal more trouble ahead for other high carbon fossil fuel industries. This, of course, has serious implications for Kinder Morgan. Investors are concerned that aspects of the company's current business strategy are not sustainable given the changing nature of demand, emerging technologies, and policy interventions aimed at limiting global temperature increases. We require additional information on how Kinder Morgan is preparing for market conditions in which demand growth for the high carbon fuels it transports is reduced."

ABOUT FIRST AFFIRMATIVE FINANCIAL NETWORK
First Affirmative (http://www.firstaffirmative.com/) offers investment management and consulting services for socially conscious investors. Call it green, sustainable, or responsible, First Affirmative works with money as a tool for transformation. Directing investment capital toward businesses that offer solutions to some of the world's most pressing environmental and social challenges is not only possible, but increasingly common. First Affirmative helps clients invest in companies that contribute to a clean, healthy environment, treat people fairly, embrace equal opportunity, produce safe and useful products, and support efforts to promote a more peaceful world.

Editor's Note: The KMI annual shareholder meeting will take place tomorrow, May 10, 2016, at 3:00pm Central Time in Houston, Texas.

SOURCE First Affirmative Financial Network, Colorado Springs

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