Chevron Corporation: Disclose Paris Compliant Emissions Targets
BE IT RESOLVED: Shareholders request that the Board of Directors, in annual reporting from 2020, include disclosure of short-, medium- and long-term greenhouse gas targets aligned with the greenhouse gas reduction goals established by the Paris Climate Agreement to keep the increase in global average temperature to well below 2°C and to pursue efforts to limit the increase to 1.5°C. This reporting should cover both the corporation’s operations and products, omit proprietary information, and be prepared at reasonable cost.
SUPPORTING STATEMENT: It is widely accepted that a transition to a low carbon economy - driven by advances in technology and government policy aligned with the Paris Agreement - is under way. As the use of zero- and low-carbon technology increases due to technical breakthroughs and decreasing costs, and as governments take steps to limit greenhouse gas emissions, fossil fuel companies face enhanced risk. These trends could limit returns to Chevron’s investors by increasing the company’s operating costs or by reducing demand for its products.
WHEREAS: The Grantham Research Institute on Climate Change and the Environment has identified at least 1,512 climate change laws. Growing recognition of the risks from climate change will result in increasing numbers of, stringency of, and support for these laws.
Disclosing targets is an important means of assuring investors of the management of risks associated with climate change and investors welcome Chevron’s recent announcement of joining the Oil and Gas Initiative and the group’s adoption of an average methane intensity reduction target. However, some of Chevron’s peer companies, including Total and Shell, have disclosed much longer- term ambitions, including for emissions resulting from the use of their products. Investors are seeking enhanced disclosure of targets and other measures demonstrating company alignment with the Paris Agreement.
To ensure that Chevron is adequately prepared to be successful into the future for its shareholders and other stakeholders we believe it is essential for the company to identify and disclose targets that are aligned with the goals of the Paris Agreement.