Continuing a recent trend that began in the 2019 proxy season, Berkeley, California-based proponent As You Sow has once again come to an oil and gas company operating on the Gulf Coast to request that it report on the public health risks of expanding petrochemical operations in the environmentally risky region. The targeting of this year’s proposal is somewhat unique. Submitted to both Chevron and Phillips 66, it is primarily focused on the operations of Chevron Phillips Chemical LLC (“CPChem”), a joint venture formed by the two firms. The board’s perspective on the proposal is largely from the point of view of CPChem, and the distinction between the main company and its joint venture evidently was not sufficient to warrant the SEC to grant Phillips 66 no-action relief. Hurricane Harvey (2017) was the first major hurricane to hit the Gulf Coast since the petrochemicals boom. A chemical plant operated by CPChem was the site of one of the largest chemical releases due to the storm. As You Sow submitted the proposal to CPChem’s owners out of concern that such unplanned chemical releases would become more common as climate change intensifies flooding and storm strength. As CPChem is planning to build an $8 billion petrochemical plant on the Gulf Coast in partnership with Qatar Petroleum, it does not appear to be wavering amidst the region’s natural disaster risk. Read Full Article, Glass Lewis, May, 1, 2020
