ConocoPhillips Called to Address Concerns of Indigenous Peoples
MMA Praxis Mutual Funds joined Boston Common Asset Management and other concerned investors in filing a shareholder resolution with ConocoPhillips seeking a report on the Company’s policies, procedures and practices for obtaining consent of Indigenous Peoples affected by exploration and development activities. The majority of untapped oil reserves lie in ecologically sensitive and politically unstable parts of the world. It is increasingly important that companies develop sophisticated processes for engaging Indigenous Peoples whose lives are dramatically transformed and disrupted by massive natural resource extraction projects. Failure to do so generates anger, disenfranchisement and active—even violent—resistance. This has cost energy companies billions of dollars, damage to property and loss of human life in countries like Nigeria, Indonesia, Ecuador, Columbia and elsewhere.
Shareholders raised these concerns related to ConocoPhillips plans to explore and develop resources within the remote Northern Peruvian Amazon—a region where a number of indigenous peoples are seeking to live in Voluntary Isolation from the modern world, preserving their ancient ways of life. Efforts by ConocoPhillips and its partner Repsol, pose very real threats to the economic, spiritual, cultural and physical health of these isolated peoples.
The resolution appeared on the Company’s ballot at its May 14, 2008, annual meeting and earned a 9% positive vote, down slightly but sufficient for refiling a third year. The number not voting with management (“yes” + abstentions) actually rose to 24%.
While the Company was slow to come to the table, a significant dialogue was set up for May 12 with key ConocoPhillips executives. In addition, a brief meeting was arranged with ConocoPhillips Chairman and CEO, James Mulva and another Board member. Shareholders facilitated the participation of local Peruvian advocates and representatives of several international NGO’s working in the disputed region, in both the dialogue and the Company’s annual meeting. Providing such links between the ”top” of a massive company and those at “the bottom” impacted by its actions is a vital function socially concerned shareholders play. The Company’s high-level involvement in these discussions is a positive sign. Both ConocoPhillips and Repsol have indicated an interest in developing clearer processes for managing and addressing Indigenous Rights issues. Shareholders believe they have a good foundation and commitments for ongoing dialogue on these matters.
