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Chevron Climate Risk 2011

There is a general consensus among climate scientists that, without significant intervention, climate change will result in dramatic weather events, rising sea levels, drought in some areas and significant impacts on human and ecosystem health. The Pentagon also believes that climate change will have significant national security implications.
Climate change will therefore have profound negative effects on global economies, confronting business leaders with major challenges.
Scientific, business, and political leaders globally have identified the risks of climate change for the natural environment and the global economy and therefore called for urgent action by governments and companies.
In response, numerous companies are proactively reducing their carbon footprints. Chevron is advertising on its website and in public ads many steps the company is taking to reduce greenhouse gases contributing to climate change. Proponents commend our company for this leadership.
Many investors, including members of the Investor Network on Climate Risk, representing approximately $9 trillion of assets under management and the Carbon Disclosure Project backed by investors with approximately $64 trillion in assets under management, urge companies to provide full reporting on greenhouse gas emissions and full disclosure of climate risk. The Securities and Exchange Commission mandated climate risk disclosure in company 10K Reports.
Many companies are conducting internal assessments of business risks and opportunities posed by climate change and becoming more transparent by adding sections in their 10K, Annual Reports, website and other public statements on present and future risks.
Moreover, questions about risks inherent in deep water drilling, oil sands development and hydraulic fracturing are rapidly expanding.
Clearly, climate change, other environmental risks and related government policies may have a significant impact on our investment in Chevron.
Thus it is important for Chevron to carefully study the impacts, risks and opportunities posed by climate change for our company and its future operations to enable management to respond effectively to protect and enhance share owner value.
Resolved: Investors request Chevrons’ Board of Directors to prepare a report to share owners on the financial risks resulting from climate change and its impacts on share owner value overtime, as well as actions the Board deems necessary to provide long-term protection of our business interests and share owner value. The Board shall decide the parameters of the study and summary report.
A summary report will be made available to investors by September 15, 2011. Cost of preparation wilt be kept within reasonable limits and proprietary information omitted.
Supporting Statement:
We suggest management consider the following in their risk analysis.
- Emissions management;
- Physical risks of climate change on our business and operations, e.g. the impact of rising
sea levels on operations, including the supply chain;
- Water Scarcity
- U.S. and global regulatory risks of Legislative proposals for carbon taxes and cap and trade;
- “Material risk” with respect to climate change;
- Positive business opportunities ;
- Reputation, brand and legal risk.