Chevron Climate Risk 2013
|Filer||The Christopher Reynolds Foundation|
|Sector||Oil and Gas|
|Subject(s)||Climate Change; Greenhouse Gas Emissions|
|Resolved Clause Summary||Issue report reviewing physical risk exposure, cost estimates, and plans to mitigate climate risk|
WHEREAS our company’s website says that:
• The appetite for oil and other energy sources is growing dramatically, with worldwide energy consumption projected to increase by 36 percent by 2035.
• The growing demand is fueled by a population that is predicted to increase 25 percent in the next 20 years, with most of that growth in countries with emerging economies, such as China and India.
• Rising energy demand from economic output and improved standards of living will likely put added pressure on energy supplies. For example, in China alone, demand is expected to increase by 75 percent by 2035.
• Even if the use of renewables triples over the next 25 years, the world is likely still to depend on fossil fuels for at least 50 percent of its energy needs.
WHEREAS increasing burning of fossil fuels creates increasing emissions, which increase atmospheric GHG concentrations which will continue to grow, and will do so more rapidly.
WHEREAS according to the OECD report “Environmental Outlook to 2050: The Consequences Of Inaction”: “without more ambitious policies, the Baseline projects that atmospheric concentrations of GHG would reach almost 685 parts per million (ppm) CO2-equivalents by 2050. This is well above the concentration level of 450 ppm required to have at least a 50% chance of stabilizing the climate at a 2-degree Celsius (2oC) global average temperature increase.”
WHEREAS according to the 2012 Special Report of the International Panel on Climate Change (IPCC) “Managing The Risks Of Extreme Events And Disasters To Advance Climate Change Adaptation”: “The character and severity of impacts from climate extremes depend not only on the extremes themselves but also on exposure and vulnerability. …Disaster risk management and adaptation to climate change focus on reducing exposure and vulnerability and increasing resilience to the potential adverse impacts of climate extremes, even though risks cannot fully be eliminated.”
WHEREAS over the next 25 years our company could face increasing exposure to the impacts of climate change:
• Rising sea levels, storm surge and increased severity of hurricanes could impact shoreline facilities, off shore drilling facilities, and sea transport of oil.
• Increasing temperatures could melt permafrost impacting the stability of oil pipelines and other Arctic drilling and transport operations.
• Changes in temperature and rain patterns could disrupt agriculture and living conditions that could lead to political unrest in areas where our company has facilities.
RESOLVED: Chevron shareholders request that an committee of independent members of the Board of Directors review the exposure and vulnerability of our company’s facilities and operations to climate risk and issue a report to shareholders (at reasonable cost and omitting proprietary information) that reviews and estimates the costs of the disaster risk management and adaptation steps the company is taking, and plans to take, to reduce exposure and vulnerability to climate change and to increase resilience to the potential adverse impacts of climate extremes.