Chevron AGM: Investor Angst Grows With Oil Giants’ Refusal to Plan Transition to Low Carbon Economy
As You Sow, Arjuna Capital Request Chevron Address A Sufficient Range Of Options On How To Significantly Reduce Dependence On Fossil Fuels
FOR IMMEDIATE RELEASE
San Ramon, California – May 30, 2018 – Investors at Chevron Corporation’s annual meeting will vote today on a shareholder resolution put forward by As You Sow and Arjuna Capital. The resolution asks Chevron to report to shareholders on how the company plans to transition its business model to successfully align with a decarbonizing energy market, while also taking a role in helping to limit the planet’s warming to under two degrees Celsius. The requested plan would allow investors to better assess whether the Company is addressing the risks that climate change may pose to the company and shareholder value.
“The heyday of fossil fuel-based energy is over as global energy markets race toward cleaner energy sources,” said Danielle Fugere, President of As You Sow. “Recognizing the speed of technological innovation and regulatory change, shareholders today ask Chevron to plan for success by adopting a 2 degree-compatible business plan. The Company has a range of actions available to it, from reducing the amount and types of oil & gas it develops, to bringing renewables into its energy mix, to otherwise diversifying. Whatever it chooses, Chevron must take action to thrive in a decarbonizing economy. Companies like Repsol and Equinor (formerly Statoil) are already showing it is possible to do so, and we ask Chevron to rise to the occasion.”
“It’s clear from Chevron’s disclosures that it intends to burn through as many fossil fuels as possible, regardless of its impact on global temperatures, said Natasha Lamb, Managing Partner, Arjuna Capital. A business-as-usual path is unsustainable and fraught with long-term investor value destruction. Chevron has the opportunity to take a different path, but the time to act is now, for the climate and investors.”
Despite support last year from proxy advisor Institutional Shareholder Services (ISS) and a 26% vote in favor of the proposal, ISS recommended this year that Chevron had adequately addressed climate risk in its recent climate risk report, and that its mainstream investors should leave decisions over the company's energy portfolio choices to management. For its socially responsible clients ISS supported voting in favor, noting Chevron’s failure to provide details on a business plan or portfolio mix that would allow it to remain competitive under a 2 degree Celsius scenario.
A similar measure was put before ExxonMobil for today’s annual meeting in Dallas, but the company successfully silenced shareholders when it asked the Securities and Exchange Commission (SEC) to block As You Sow and Arjuna Capital’s “Low Carbon Business Model” resolution.
As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. See our resolutions here.
Arjuna Capital is a registered investment advisor, specializing in sustainable and impact investing. www.arjuna-capital.com.