Disclosing
the Facts:

Transparency and Risk in
Hydraulic Fracturing Operations

Companies across the board are failing to report reductions of their impacts on communities and the environment from hydraulic fracturing.

The oil & gas production industry is consistently failing to report measurable reductions of its impacts on communities and the environment from hydraulic fracturing operations, according to a scorecard report released by As You Sow, Boston Common Asset Management, Green Century Capital Management, and the Investor Environmental Health Network.

The report, Disclosing the Facts: Transparency and Risk in Hydraulic Fracturing Operations, benchmarks 24 companies engaged in hydraulic fracturing against investor needs for disclosure of operational impacts and mitigation efforts.

While scores varied, no firm succeeded in disclosing information on even half of the selected 32 indicators related to management of toxic chemicals, water and waste, air emissions, community impacts, and governance. Even the highest scoring company, Encana Corporation (ECA) provided sufficient disclosure on just 14 of the 32 indicators. The lowest scoring companies were: BHP Billiton Ltd. (BHP) (2 of out 32 indicators); BP plc (BP) (2 out of 32 indicators); Exxon Mobil Corporation (XOM) (2 out of 32 indicators); Occidental Petroleum Corporation (OXY) (2 out of 32 indicators); Southwestern Energy Co. (SWN) (2 out of 32 indicators); and, in last place, QEP Resources, Inc. (QEP) (1 out of 32 indicators).

The report notes that measurement and disclosure of best management practices and impacts is the primary means by which investors can assess how companies are managing the impacts of their hydraulic fracturing operations on communities and the environment.

Institutional investors have been pressing oil and gas companies since 2009 for greater disclosure of their risk management practices. Investors have engaged over two dozen companies, filing nearly 40 shareholder proposals on these issues to date. The shareholder proposals have led to improved disclosures at many of the companies, but the scorecard report notes that much of this disclosure is narrative and qualitative in form, while quantifiable data are lacking.



The information in this report has been prepared from sources and data the authors believe to be reliable, but we assume no liability for and make no guarantee as to its adequacy, accuracy, timeliness or completeness. Boston Common Asset Management and Green Century Capital Management and the mutual funds that they manage may have invested in and may in the future invest in some of the companies mentioned in this report. The information in this report is not designed to be investment advice regarding any security, company or industry and should not be relied upon to make investment decisions. We cannot and do not comment on the suitability or profitability of any particular investment. All investments involve risk, including the risk of losing principal. No information herein is intended as an offer or solicitation of an offer to sell or buy, or as a sponsorship of any company, security, or fund. Opinions expressed and facts stated herein are subject to change without notice.