Organization: Chevron Corporation

Year: 2015

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 US. target reduction of 80%.
We believe the US. 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, companies in the energy sector should review and update their public policy positions related to climate change.
The public perception is that oil and gas companies often oppose laws and regulations addressing climate change or renewable energy. For example, in 2009, when Congress debated comprehensive climate change legislation, oil, gas and electric utilities spent more than 300 million on lobbying (Opensecrets.org).  And Chevron is an active supporter of the Western States Petroleum Association (WSPA) which actively attacks California climate legislation (AB32) providing climate change solutions for California. The WSPA is one of the major lobbyists against climate regulations spending 27 from 2009-14

Company political spending and lobbying on climate or energy policy, including through third parties, are increasingly scrutinized. For example, investors question company public policy advocacy through the US. Chamber of Commerce, which often opposes climaterelated legislation and has attacked the EPA for its climate initiatives. In contrast, over 1,000 forward looking businesses such as General Motors, PepsiCo, General Mills, Nestle, Microsoft, Nike and Unilever, signed the Climate Declaration that calls for legislation stating, Tackling Climate Change is one of Americas greatest economic opportunities of the 21Century."

Resolved: Shareholders request that the Board commission a comprehensive review of Chevron's positions, oversight and processes related to public policy advocacy on energy policy and climate change. This would include an analysis of political advocacy and lobbying activities, including indirect support through trade associations, thinktanks and other nonprofit organizations.  Shareholders also request that company prepare (at reasonable cost and omitting confidential information) and make available by September 2016 a report summarizing the completed review.

Supporting Statement:  We recommend this review include:

• Chevrons support for American Legislative Exchange Council (ALEC) as it campaigns against renewal energy at the state level and support for Western States Petroleum Association (WSPA) as it attacks Californias legislation (AB32) On climate,
• Board oversight of the companys public policy advocacy on climate;
• Direct and indirect expenditures (including dues and special payments) for issue ads designed to influence elections, ballot initiatives or legislation related to climate change