Chevron Corp. Makes Breakthrough on Tracking Carbon Emissions, Shareholders Withdraw Greenhouse Gas Resolution
Chevron Action Contrasted with “Recalcitrance” at ExxonMobil (XOM) as Company Becomes First U.S. Super-major to Agree to Separately Track Carbon Content of Products
DALLAS, TX///May 26, 2009///On the eve of the Chevron and ExxonMobil annual meetings, the Sisters of St. Dominic of Caldwell, NJ, a faith-based institutional investor and member of the Interfaith Center on Corporate Responsibility, announced today that it has withdrawn its greenhouse gas (GHG) emissions shareholder resolution at Chevron Corp. (CVX) now that the oil company has agreed to track and report on the carbon content of its products.
The Sisters of St. Dominic represent the group of 16 investors that filed the proposal at Chevron this year.
Noting that Chevron is the first U.S. oil supermajor to agree to undertake such an action, Sister Patricia Daly, OP, Dominican Sister and executive director of the Tri-State Coalition for Responsible Investment, contrasted the action with the continued refusal of ExxonMobil to deal with the emerging low-carbon economy in a substantive way.
Sister Daly noted, “As shareholders, we appreciate the difficulties that Chevron management faces in the long-term in confronting the task to reduce GHG emissions. The recent advancements Chevron has made in reducing its carbon footprint and preparing the company for viability in a low-carbon business environment cannot be ignored. By withdrawing our proposal, we acknowledge Chevron’s progress in developing programs for energy efficiency and investments in less-polluting products.”
Leslie Lowe, director of ICCR’s program on Energy and the Environment said, “As U.S. and global policy initiatives progress, investors are grateful to see a more sustainable strategy in the midst of carbon constraints nationally and internationally, in a time of volatility in both the current economy, and the oil and gas sector.”
“By contrast, ExxonMobil has demonstrated shortsightedness and recalcitrance by focusing more on public relations than on low-carbon commitments,” continued Daly. “The contrast between Chevron and ExxonMobil on these issues is now starker than ever.” Tomorrow, a similar resolution sponsored by more than 30 institutional investors will be presented before shareholders at ExxonMobil. ExxonMobil’s Board of Directors urges shareholders to vote against the proposal.
Since 1992, investor members of the Interfaith Center on Corporate Responsibility have urged Chevron to strategically plan for a carbon-constrained global economy. Over the years, these investors have urged Chevron to disclose emissions, consider climate risk in capital allocation, constructively engage in the public policy process, and more recently, to develop a business plan that includes setting an annual greenhouse gas reduction target for global operations and products.
A letter dated today from the Caldwell Dominican Sisters to Chevron’s CEO David O’Reilly noted that while the resolution was being withdrawn at this time, shareholders and management would continue to work together to address: “areas where we are eager to see Chevron make further progress: environmental impact, community impact and consideration of life-cycle emissions of oil sands development; impacts of operations and exploration on local communities; and policy initiatives on climate legislation, both domestically and internationally.”
The Interfaith Center on Corporate Responsibility (http://www.iccr.org) is a coalition of nearly 300 faith-based institutional investors representing over $100 billion in invested capital. ICCR members bridge the divide between morality and markets by envisioning a civic economy that integrates ethical, environmental and social values. Inspired by faith, committed to action, ICCR members work to build a just and sustainable global community.
About Tri-State Coalition for Responsible Investment
The TRI-State Coalition for Responsible Investment (CRI) is an alliance of 40 Roman Catholic institutional investors primarily located throughout the New York metropolitan area. Members utilize their power as shareholders to engage corporations in issues of sustainability.
For more information:
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