Chesapeake hit by $2m divestmentMay 2011
Nearly $2million (£1.2m, €1.4m) has been divested from Chesapeake Energy over concerns about the company’s alleged irresponsibility on home soil in the US.
Harrington Investments, an SRI adviser, has divested more than 50,000 shares in the gas-drilling company because it is unhappy with the environmental and health and safety record of its Pennsylvania operations.
The alleged offences concern Chesapeake’s hydraulic fracturing operations, in which extreme pressure is applied to crack open rocks to release gas. Harrington says that in the past three years a subsidiary of the company has been found guilty of more than 100 violations of the Pennsylvania Environmental Protection Department’s rules.
Harrington said: ‘We have a fiduciary duty to our clients to invest in companies that show a strong commitment to the environment. Chesapeake obviously violates our investment criteria when it consistently and flagrantly violates environmental standards.’
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