In the face of the latest disasters, the US green energy economy has gained tremendous momentum, as nation reels from recent spills
New, more effective sorts of shareholder pressure have arisen from the most recent catastrophes affecting the oil industry.
Recent disasters associated with conventional fuels, like the Gulf of Mexico spill and the Massey coal mining accident have caused investors to take a much more personal and detailed interest in the policies of companies holding their money.
The fact that such prolific and giant fuel companies have such persistent streaks of accidents have driven investors to actively demand stringent safety and environment- minded regulations from the companies whose shares they represent.
Fossil fuel dependence appears to be more and more hazardous, as fuel companies undertake increasingly riskier operations, due to easy- access resources running dry. It is also painfully clear to most investors that environmental risks when realized manifest themselves into vast financial losses for the shareholders involved.
In the face of recent spill and accidents, new stricter guidelines have been issued by the Securities and Exchange Commission that will allow shareholders to participate in company meetings regarding safety regulations and exploration plans, as well lodge demands for more details concerning the companies’ future endeavours.
The changes have already affected the system’s workings, as more than 50% more projects have been presented by the companies to their key investors in order to gain approval, critique etc. One of the key aspects of new operations that shareholders are concerned with is a much more involved approach to the potential environmental damage that any future project may result in. Worries about climate change also dominated investor concern. Hazards like coal ash, oil spills and many other dangers inherent to the fuel exploration industry are now considered by not only the companies waging the risky operations, but by the investors standing behind the companies as well.
Proposals have been lodged by shareholder asking companies to reveal full lists of ingredients used in their chemical processes during mining or drilling procedures, which can prove to be a great help to emergency workers coming in to deal with any future problems and accidents.
A huge part of this disclosure momentum is directly tied to the prevalent deepwater drilling accidents that have plagued the oil industry ever since its exploration teams wandered fully offshore to find new bountiful reserves for drilling.
The massive disaster that struck Massey Energy mines last April also contributed greatly to investor anxiety. The explosion that happened in the mines left 29 workers dead and billions of dollars of damage done to the West Virginia region.
Many investors who concern themselves with the environmental side of things have been flocking to BP, as the company has expressed extensive plans to become more alternative in its energy explorations. Yet the company’s fiasco in the Gulf has drastically affected its reputability with shareholders, a considerable amount of whom walked away from the company after the spill.