Countries pledge to reduce methane emissions

Shareholder advocacy |

Praxis shareholder advocacy role leads to stronger standards

Praxis Mutual Funds® participated in an investor statement supporting the U.S. and Canada in their March 2016 pledge to reduce methane pollution in the oil and gas industries by 40 to 45 percent over the next decade, and put forth standards to achieve the goal. Methane is an extremely powerful greenhouse gas – with at least 84 times more warming power than carbon dioxide over a 20-year period.

During a recent open comment period, Praxis also encouraged the Environmental Protection Agency to use stronger standards in its new methane regulations.

In May 2016, the Obama Administration completed the first stage of a multi-stage effort to reduce methane emissions in the U.S. oil and gas industry – the first time methane has been directly regulated. The EPA also strengthened its methane regulations, citing the comments it received as the reason it made changes to its proposed rules. In addition to polluting the atmosphere, methane emissions from the oil and gas industry represent lost product, with financial consequences for companies and their shareholders. The oil and gas industry is the largest industrial source of methane emissions in the U.S., and recent studies have concluded that methane emissions from the U.S. natural gas supply chain are nearly double the official estimates.

Fortunately, these emissions can be meaningfully reduced in a cost-effective manner when companies choose to enact appropriate conservation strategies.