Organization: Chevron Corporation

Year: 2016

Description: Whereas: The Intergovernmental Panel on Climate Change (IPCC), the world’s leading scientific authority on climate change, confirmed in 2013 that warming of the climate is unequivocal and human influence is the dominant cause. Extreme weather events have caused significant loss of life and billions of dollars of damage. Many investors are deeply concerned about existing and future effects of climate change on society, business and our economy.

The IPCC estimates that a 50% reduction in greenhouse gas emissions globally is needed by 2050 (from 1990 levels) to stabilize global temperatures, requiring a U.S. target reduction of 80%.
We believe the U.S. Congress, Administration as well as States and cities, must enact and enforce strong legislation and regulations to mitigate and adapt to climate change, reduce our use of fossil fuels and move us to a renewable energy future.

Accordingly, we urge companies in the energy sector to review and update their public policy positions. 
Investor concern about climate lobbying is growing.  The Principles for Responsible Investment (PRI) published a set of Investor Expectations on climate lobbying endorsed by investors with $4 Trillion in AUM calling on companies to insure their public policy advocacy supported efforts to mitigate and adapt to climate change.

The public perception is that oil and gas companies, including Chevron, often oppose laws and regulations addressing climate change or renewable energy.

Chevron is a prominent member and a financial supporter of a number of groups combating climate solutions.
Chevron funds and actively supports ALEC (American Legislative Exchange Council) which campaigns against renewal energy at the state level and opposes the EPA Clean Power Plan. Over 100 companies including BP, Shell, Procter & Gamble, Wal-Mart and Google have left ALEC in light of their controversial positions on a range of issues.

Chevron is also an active member in the Western States Petroleum Association (WSPA) which actively attacked California climate legislation urging climate change solutions and reduction of use of fossil fuels for California.  The WSPA is one of the major lobbyists against climate regulations spending $27 million from 2009-14.

And the U.S. Chamber of Commerce, where Chevron is a prominent member, has sued the EPA and is actively campaigning against the new EPA Clean Power Plan.

In contrast, in October 2015 ten of the world’s oil companies, including BP and Shell, called for strong global climate goals and supported reducing their Greenhouse Gas emissions.

Resolved: Shareholders request that the Board institute a comprehensive review of Chevron’s positions, oversight and processes related to public policy advocacy on energy policy and climate change and share a summary of findings, omitting confidential information, with investors by September 2016.

Supporting Statement:
This review would include an analysis of political advocacy and lobbying activities, including indirect support through trade associations, think tanks and other nonprofit organizations and issue ads designed to influence elections, ballot initiatives or legislation related to climate change.