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none of the company's oil and gas holdings are threatened by a global push to reduce
carbon emissions.
Chevron told investors that the proposed climate measure was flawed. Efforts to limit
warming could allow some energy producers, such as those who sell natural gas, to
benefit while others fall out of favor, including coal-mining companies. Chevron said.
The company is a large producer of natural gas and factors in a theoretical future price
of carbon when deciding which projects to sanction, making a stress test unnecessary,
the company said.
"We don't think this proposal will advance our thinking," Chevron Chief Executive John
Watson said Wednesday.
Measures of this sort have been pushed in prior years by environmental groups and
activist investors, but now more traditional shareholders are putting their muscle
behind the proposals as concern spreads over the effect that policies to mitigate climate
change could have on energy company financials.
Those who led the filing of the Exxon resolution were the Church Commissioners for
England and the New York State Common Retirement Fund, along with others. The lead
filers for the Chevron resolution were Hermes Equity Ownership Services and Wespath
Investment Management, a division of the United Methodist Church.
Investors representing more than $10 trillion in assets pledged to
support the climate proxy measures, which assert that Exxon, Chevron and other big oil
companies should be transparent about how their drilling prospects would suffer if the
world turned away from carbon-intensive fuels, including crude oil.
The New York State Common Retirement Fund, Norway's sovereign-wealth fund, the
Church of England, Calpers and others actively campaigned for the proposals.
In December, nearly 200 countries pledged in Paris to hold the rise in average global
temperatures to less than 2 degrees Celsius above preindustrial levels. This is the
yardstick many shareholder resolutions have used to urge the companies to take greater
action and show how such a goal will affect their business units.
Supporters of that effort say more investors want to see how companies are preparing
for climate change impacts. A stress-test measure at Occidental Petroleum Corp.
received 49% of votes, and similar proposals passed overwhelmingly last year at two
other big oil companies, BP PLC and Royal Dutch Shell PLC.
In a report on climate released this month. Total SA, the French energy company, said it
has reduced activity in Canada's oil-sands region and is avoiding Arctic exploration over
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