Praxis Mutual Funds has called on oil and gas companies to provide additional disclosures regarding the environmental and financial risks associated with their hydraulic fracturing (natural gas drilling) operations. In addition, the mutual fund family is urging companies to adopt precautionary best management practices above and beyond current regulatory requirements.

A Praxis press release said, “Traditional reserves of natural gas are dwindling, and companies are turning to the unconventional drilling technique known as hydraulic fracturing. A mix of water, particles and chemicals are injected underground under extremely high pressure, to release vast reserves of previously unavailable natural gas. It is estimated that 60% to 80% of new natural gas wells drilled in the next decide will require hydraulic fracturing techniques.”

Mark Regier, director of stewardship investing for Everence Capital Management and Praxis Mutual Funds, commented, “As an investor in companies with hydraulic fracturing operations, and with many Everence clients living in areas both impacted and enriched by fracturing activity, it is our responsibility to be engaged shareholders.”

He added, “In a world starved for energy and seeking cleaner alternatives, natural gas can be a bridge to a clean energy future. Hydraulic fracturing presents the potential for a large, domestically-accessible energy resource. On the other hand, it may also have significant negative environmental impacts on communities.”

Environmental experts have cited the risk of toxic chemical spills, as well as air, ground, and surface water pollution. In addition, regulatory penalties and litigation linked to fracturing pose major financial risks to energy companies and their shareholders.

“Investors want increased transparency,” says David Gautsche, president of Praxis Mutual Funds. “We want to have meaningful dialogue with – and disclosures from – companies with hydraulic fracturing operations, so that shareholders can fully assess the risks and rewards associated with this drilling technique.”

Praxis Mutual Funds is a faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with faith values. The firm is based in Goshen, Indiana. Everence offers banking, insurance, and financial services with community benefits and stewardship education.