Sempra Energy: Report on LNG Operations and Community Health Impacts in Southwest Louisiana

November 22, 2024 As You Sow

WHEREAS: Sempra has a greater than 50% stake in Cameron LNG Phase I, a Liquefied Natural Gas (LNG) terminal located near northern Calcasieu Lake in Hackberry, Louisiana (“the Facility”).[1] The Facility began its full commercial operations in August 2020 and has one of the largest LNG export capacities in the country.

LNG plants emit carbon monoxide, sulfur dioxide, and volatile organic compounds.[2] Long-term exposure to these pollutants can lead to heart disease, certain types of cancer, and damage to the reproductive system and internal organs.[3] Pollution from LNG terminals “compound the health, economic and educational disadvantages” already faced by nearby communities, leading to increased illnesses that cause work and school absences, as well as increased health care expenses, and an increase in premature deaths.[4]

Operational problems at the Facility have led to widespread community concern regarding environmental injustices. [5]

According to a report by the Louisiana Bucket Brigade, the Facility has had 67 total accidental releases since export operations began in 2020, averaging nearly two accidental releases per month.[6]
A recent report on the health impacts of the Facility estimates the health costs related to the facility to be more than $124 million, accounting for 245 lost workdays, 2,495 lost school days, and 5,000 reported cases of asthma symptoms. [7]

As Parnassus Investment recently noted, “It’s in both the companies’ and neighboring communities’ best interests for companies to prevent, minimize and remedy the harms associated with their chemical use and operational pollution. If they fail to do so, they may jeopardize the long-term growth, longevity and competitiveness of their businesses—and ultimately shareholder value.”[8]

Stakeholders have raised concerns regarding the adverse health effects of LNG operations in Louisiana. The Facility has released reports summarizing community outreach programs, but has not released metrics on adverse health impacts related to its operations. Investors are recommending that companies operating in pollution-heavy industries take a proactive approach to environmental justice to mitigate material risk, while ensuring that fenceline communities have access to clean, safe, and healthy environments.

BE IT RESOLVED: Shareholders request that Sempra disclose an environmental justice report on the health and economic impacts that the Cameron LNG Phase I Facility has had on fenceline communities.

SUPPORTING STATEMENT: Proponents suggest the report include current actions taken by Sempra to address adverse health impacts of its Facility on surrounding communities and actions planned to be taken; data on the Facility’s accidental emissions releases including type, frequency, and amount; frequency of flaring events; information on associated health impacts of unplanned releases; and noise complaints associated with Cameron LNG Phase I operations.

[1] https://www.sierraclub.org/dirty-fuels/us-lng-export-tracker

[2] https://www.environmentalhealthproject.org/post/liquefied-natural-gas-lng-health-and-climate-impacts

[3] https://www.environmentalhealthproject.org/post/liquefied-natural-gas-lng-health-and-climate-impacts

[4] https://fossilfreeciti.org/wp-content/uploads/2024/09/Citi-Funding-Fossil-Fueled-Environmental-Racism-in-the-Gulf-South.pdf, p.22

[5] https://www.citizen.org/article/insurers-secretly-back-lng-boom-in-the-gulf-coast/

[6] https://labucketbrigade.org/wp-content/uploads/2023/01/Gas_Export_Spotlight_CameronCalcasieuPass.pdf, p.5

[7] https://fossilfreeciti.org/wp-content/uploads/2024/09/Citi-Funding-Fossil-Fueled-Environmental-Racism-in-the-Gulf-South.pdf, p.23

[8] https://www.parnassus.com/updates/article/investment_case_for_environmental_justice

Resolution Details

Company: Sempra Energy

Lead Filers: As You Sow

Year: 2025