Targa Resources Corp | Interfaith Center on Corporate Responsibility

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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>Targa Resources Corp</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Climate Change </p>
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<strong>Focus Area:</strong>
<p>GHG Reduction and Targets </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p>WHEREAS: The Intergovernmental Panel on Climate Change reports that immediate and sustained reductions in greenhouse gas (“GHG”) emissions are required to align with the Paris Agreement’s 1.5°C goal and limit the worst consequences of climate change.1 Reducing emissions from fossil fuel operations is a critical part of decarbonizing the global economy, and investors are increasingly demanding that companies establish climate transition plans to mitigate risk.2</p>
<p>Targa Resources Corp, one of the largest midstream natural gas operators in the United States, faces increasing risks from its lack of operational GHG emission reduction targets. In its most recent annual report, the Company identifies “a number of risks arising out of the threat of climate change” including growing emissions regulations, decreasing demand for natural gas products, and rising stakeholder sustainability demands.3 By setting Paris-aligned emissions reduction targets, Targa can increase its operational efficiency, prepare for growing climate-related regulations, and increase its competitive position amongst peers, all of which are important steps to mitigate climate-related risk.</p>
<p>Targa has made significant progress in reducing its operational methane emissions, guided by segment specific methane emissions intensity targets.4 These targets are an important first step, but methane comprises only 5% of Targa’s operational GHG emissions footprint.5 By setting GHG emissions reduction targets for the full range of its operations, Targa can expand its emissions and risk mitigation strategy beyond methane, maximizing the benefits associated with proactive carbon management</p>
<p>Leading midstream players Enbridge and The Williams Companies have set near-term Scope 1 and 2 operational emissions intensity targets and disclosed net zero emissionsstrategies.6Notably, Enbridge provides a detailed breakdown of the emissions mitigation levers it will use to meet its goals, providing shareholders with valuable insight into its ongoing efforts to mitigate risk.7 While reducing methane emissions is an important part of any climate strategy, Targa’s midstream peers have more complete emissions reductions goals that will serve them in meeting climate regulations and competing against peers.</p>
<p>By setting science-aligned operational emissions reduction targets and providing a comprehensive transition plan, Targa can mitigate climate-related risk, capitalize on climate-related opportunities, catch up to its more sustainable peers, and ensure long-term, sustainable value creation.</p>
<p>BE IT RESOLVED: Shareholders request that Targa issue a report, at reasonable expense and excluding confidential information, disclosing how the Company intends to reduce its full range of Scope 1 and 2 operational greenhouse gas emissions in alignment with the Paris Agreement’s goals.</p>
<p>SUPPORTING STATEMENT: Proponents suggest, at Company discretion, that the report include:</p>

A climate transition plan to achieve emissions reduction goals across all relevant scopes; and
Annual reports demonstrating progress towards meeting emissions reduction goals.

<p>1 https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_FullVolume.pdf,p.20</p>
<p>2 https://www.iea.org/energy-system/fossil-fuels;https://trellis.net/article/large-corporations-face-increasing calls-follow-through-climate-commitments/</p>
<p>3 https://www.sec.gov/Archives/edgar/data/1389170/000095017024015841/trgp-20231231.htm,p.24</p>
<p>4 https://www.targaresources.com/static-files/f16d011c-8387-4f94-a4c5-212888a49db8,p.91</p>
<p>5 https://www.targaresources.com/static-files/f16d011c-8387-4f94-a4c5-212888a49db8,p.90</p>
<p>6 https://www.williams.com/wp-content/uploads/sites/8/2024/08/Williams-2023-Sustainability-Report-1.pdf%20,p.37;https://www.enbridge.com/~/media/Enb/Documents/Reports/Sustainability-Report-2023/Enbridge_SR_2023.pdf,p.25</p>
<p>7 https://www.enbridge.com/~/media/Enb/Documents/Reports/Sustainability-Report-2023/Enbridge_SR_2023.pdf,p.26</p>
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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> David Shugar</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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Resolution Details

Company:

Targa Resources Corp

Year:

2023

Issue Area:

Climate Change

Focus Area:

Methane Management

Status:

Withdrawn for Agreement

Resolution Text

Whereas, methane is at least 80 times more potent than carbon dioxide over a 20-year period, and cutting methane is the strongest lever we have to slow climate change over the next 25 years.[1] In 2020, 32% of anthropogenic U.S. methane emissions came from natural gas and petroleum systems.[2]

Methane emissions can be quantified directly through measurement, or indirectly through calculations and modelling. The Environmental Protection Agency’s reliance on the latter methodology fails to capture many major leaks, which are associated with the loss of product worth $2 billion per year.[3] Studies have found actual emissions to be 50 to 100% higher than reported emissions.[4] In certain basins, actual emissions are more than 10 times industry-disclosed figures.[5] These gaps suggest oil and gas industry Scope 1 emissions may be significantly higher than currently reported.

Reporting accuracy improves when direct measurement methodologies are used to identify and measure emissions by source type and to reconcile them with the site or facility level, as shown by the Oil and Gas Methane Partnership 2.0 (OGMP).[6]

Investors and governments are setting expectations for methane management: In 2021, investors managing over $6 trillion supported strong federal methane regulations. The U.S. joined the Global Methane Pledge, committing to using best available methodologies to quantify methane emissions. Companies across the world – including Cheniere, ConocoPhillips, and Occidental – are meeting these expectations by joining OGMP, thereby committing to improving methane data quality and consistency.[7]

Companies that do not accurately measure and manage methane emissions risk their reputations and licenses to operate.

Targa has taken some steps (e.g., membership in ONE Future and EPA’s Natural Gas STAR Program, methane aerial surveys on its Permian assets, participation in the Environmental Partnership’s aerial surveys[8]), but it fails to use and report on direct methane measurement across all operations.

Resolved, shareholders request that Targa issue a report analyzing the reliability of its methane emission disclosures, as reliability is crucial to adequate methane management and therefore a critical concern for investors assessing climate-related risks. The report should:

be made public, omit proprietary information, and be prepared expeditiously at reasonable cost;
summarize the results of Targa’s efforts to directly measure methane emissions, using recognized frameworks such as OGMP;
describe any material difference between direct measurement results and Company’s reported methane emissions; and
assess the degree to which any differences would alter estimates of the Company’s Scope 1 emissions.

Supporting Statement:

At management’s discretion, we recommend that the report describe:

the types of source- and site-level measurements used;
plans to improve emission estimates over time, consistent with frameworks such as OGMP;
any material difference between third-party direct measurements results and Company’s reported methane emissions, by site or region; and
plans to validate emissions estimates and disclosure via third-party audit or evaluation.

[1] https://www.ccacoalition.org/sites/default/files/press/GMA%20Press%20Release%20FINAL.pdf

[2] https://www.epa.gov/ghgemissions/overview-greenhouse-gases

[3] https://www.edf.org/climate/methane-studies

[4] https://www.seas.harvard.edu/news/2021/03/oil-and-natural-gas-production-emit-more-methane-previously-thought, https://www.nature.com/articles/s41467-021-25017-4

[5] https://business.edf.org/files/Investors-Guide-to-the-OGMP_09.17.21_FINAL.pdf

[6] Ibid.

[7] http://ogmpartnership.com/partners

[8] https://www.targaresources.com/static-files/fc7c9303-bf39-45f9-82e1-00fa111057ef

Climate Transition Plan and GHG Reduction Goals

Resolution Details

Resolution Text