Organization: Denbury Resources Inc.

Year: 2015

Description:

RESOLVED:that the shareholders of Denbury Resources, Inc. (“Denbury” or “the company”) request that the Board of Directors prepare a sustainability report that includes strategies to reduce greenhouse gas emissions and addresses energy efficiency measures as well as other environmental and social impacts, such as water use and worker safety. The report should include objective quantitative indicators and goals related to each issue where feasible, be prepared at reasonable cost and omitting proprietary information, and be published and made available to shareholders by the end of 2014.

SUPPORTING STATEMENT

A growing number of investors view companies that are considered good employers, environmental stewards, and corporate citizens as more likely to generate stronger financial returns, better respond to emerging issues, and enjoy long-term success. A 2012 Deutsche Bank review of 100 academic studies, 56 research papers, two literature reviews and four meta-studies on sustainable investing found 89% of studies demonstrated that companies with a high environmental, social and governance, or ESG, rating also show better performance.[1]In addition, a 2011 study by Harvard Business School’s Robert Eccles and two co-authors found that “high sustainability” companies—early voluntary adopters of environmental and social policies- out-performed “low sustainability” companies over an 18-year period.[2]

Accordingly, it is unsurprising that other major oil and gas companies such as Hess Corporation have led in this area through the publication of comprehensive sustainability reports addressing environmental stewardship, water use, worker safety standards and other related issues. According to analysis by the Governance & Accountability (G&A) Institute, 72 percent of the companies that make up the S&P 500 index published some form of annual CSR report for shareholders in 2013. 

Our Company’s website states that, Denbury is committed to continuously improving our Health, Safety and Environmental (“HSE”) performance by focusing on training and preparedness and has established a system of measurement to achieve superior results[3]

It is laudable that Denbury has a stated commitment to sustainable operations, however our Company has not to date produced a comprehensive sustainability report. Further according to the Company’s “HSE Policy”, the Company has “Set HSE targets and goals annually to measure our performance, to achieve superior results and to continually improve”, however none of these are disclosed to shareholders.

We recommend that the company use the Global Reporting Initiative’s (“GRI’s”) Sustainability Reporting Guidelines to prepare the sustainability report. The GRI is an international organization developed with representatives from the business, environmental, human rights and labor communities; its guidelines provide a flexible reporting system that allows the omission of content that is not relevant to company operations.

We urge shareholders to vote for this proposal.

[1] “Sustainable Investing: Establishing Long-Term Value and Performance.” DB Climate Change Advisors, Deutsche Bank Group. June 2012. http://www.dbcca/EN/_media/Sustainable_Investing_2012-Exec_Summ.pdf.

[2] (Robert Eccles et al., “The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance,” at 28-3 I (working paper Nov. 2011)

[3] http://www.denbury.com/responsiblity/health-safety-and-environmental/health-safety-and-environmental-management/default.aspx