SEC Gives Exxon a Pass on Shareholder Climate Proposal, But Not Chevron

The Securities and Exchange Commission (SEC) recently responded to shareholder resolutions sent to Chevron and ExxonMobil requesting the oil companies disclose how they plan to align their business models with a low-carbon economy. While the SEC said Exxon could dismiss the proposal, it came to a different conclusion for Chevron, saying Chevron must submit it for consideration at its upcoming shareholder meeting.

As You Sow and Arjuna Capital, groups representing shareholders dedicated to sustainable investing, submitted the proposals to both companies in December. The resolutions propose the companies issue a report describing how they could alter their business models in a decarbonizing economy and reduce dependence on fossil fuels.