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Investors Applaud International Energy Agency's Fracking Recommendations

On May 16, 2012, the Interfaith Center on Corporate Responsibility (ICCR) and Boston Common Asset Management, the Investor Environmental Health Network (IEHN) announced that 55 leading investors with roughly $1 trillion in assets under management have joined hands to back up "best practices" for the fracking of shale gas.

In the newly published report, “Golden Rules for a Golden Age of Gas", the International Energy Agency has provided several proposals that are similar to the ICCR and IEHN guidelines.

Director and Managing Director of ESG Research and Shareholder Engagement, Boston Common, Steven Heim stated that to make informed decisions and judgments on sensible investments in the energy sector, investors need complete disclosure, which should be in accordance with International Energy Agency’s rules

IEHN’s Executive Director, Richard Liroff PhD., stated that the association between ‘Extracting the Facts' and International Energy Agency’s proposals indicates that the former offers a practical tool for the companies to apply the International Energy Agency’s suggestions.

The guidelines "Extracting the Facts" was developed to provide a clear guidance on disclosure of risk management practices. This guide was inspired by requests from energy companies and investors, and is arranged around 12 main goals and supporting indicators and practices. They include managing risks transparently and at board level; assuring well integrity; reducing surface footprint; reducing and disclosing all toxic chemicals; minimizing fresh water use; protecting water quality by rigorous monitoring; minimizing and disclosing air emissions; preventing contamination from waste water; preventing contamination from solid waste and sludge residuals; securing community consent; assuring best in class contractor performance; disclosing fines, penalties and litigation; and securing community consent.

The guidelines, "Extracting the Facts: An Investor Guide to Disclosing Risks from Hydraulic Fracturing Operations," can be viewed at http://www.iehn.org/documents/frackguidance.pdf.

Will Soutter

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Will Soutter

Will has a B.Sc. in Chemistry from the University of Durham, and a M.Sc. in Green Chemistry from the University of York. Naturally, Will is our resident Chemistry expert but, a love of science and the internet makes Will the all-rounder of the team. In his spare time Will likes to play the drums, cook and brew cider.

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