39% of Chevron Shareholders Seek Full Accounting of Climate Risk

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609

BERKELEY, CA—MAY 25, 2022—Today at the annual general meeting of oil giant Chevron, investors voted on a shareholder resolution asking the company to disclose the quantitative impact on its financial position of global success in meeting the Paris Agreement’s net-zero goal.

Thirty-nine percent of shareholders voted in favor of the Chevron resolution based on preliminary numbers from the company.

The proposal asks Chevron to provide quantitative information on how the International Energy Agency’s (IEA) Net Zero by 2050 scenario will affect key components of the company’s financial position, including potential impairments, remaining asset lives, asset retirement obligations. 

The proposal, which received support from ISS, and was flagged by the CA100+, underscores that regulators, investors, and other financial players need clear information from Chevron about the growing likelihood of climate change-related risk and its impact on company value.

An independent analysis from the Carbon Tracker Initiative describes the lack of quantified disclosure by Chevron of the impact of the IEA's NZ scenario. 

Investors representing assets worth more than $103 trillion have issued a letter urging companies to reflect climate-related risks in financial reporting. 

Danielle Fugere, president of As You Sow, made the following statement:

“The fact of an ongoing energy transition is not debatable. Nor is the global net-zero goal. Yet, Chevron’s business plan and its audited financial statements appear to assume business as usual. It is therefore reasonable for investors to seek clear and quantitative information on the impact a low-carbon transition would have on Chevron’s current and future financial standing. 

“With this strong vote, investors have made it clear that companies must fully address how the global transition away from fossil fuels will affect their companies’ bottom lines and future success. As demonstrated by the IEA Net Zero by 2050 scenario, a clear pathway to achieving net-zero emissions exists — and it requires a rapid movement away from fossil fuel-based energy. The impact and risk of a business-as-usual business plan to an oil company is therefore fundamentally material, requires analysis and disclosure, and the same auditing assurance as financial disclosures.”

# # #

As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligning investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.