CHEVRON CORPORATION | Just Transition and Impact of Plant Closure at Chevron

Status
Filed
Previous AGM date
Resolution details
Company ticker
CVX
Lead filer
United Steelworkers
Resolution ask
Set targets or plans
ESG theme
  • Environment
  • Social
ESG sub-theme
  • Just Transition
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
RESOLVED: The shareholders of Chevron Corporation (the “Company”), hereby request that the Board of Directors create a report regarding the social impact on workers and communities from closure or energy transition of the Company’s facilities, and alternatives that can be developed to help mitigate the social impact of such closures or energy transitions. The report should be prepared at reasonable cost, omitting proprietary information, and be available on the Company’s website by the 2025 Annual Meeting of Shareholders.
Supporting statement
As the nation and our Company prepare for and participate in a transitioning energy economy, our Company should play a role to in helping to provide security for impacted workers and communities where our Company operates.
Our Company’s Chairman and CEO Michael K. Wirth has personally signed the Business Roundtable’s Statement on the Purpose of a Corporation which affirmed our Company’s commitment to serve all stakeholders, including “investing in our employees” and “supporting the communities in which we work.” (https://opportunity.businessroundtable.org/ourcommitment/)
UN PRI’s Statement of Investor Commitment to Support a Just Transition on Climate Change states that “the responsible management of workforce and community dimensions of climate change are increasingly material drivers for value creation.” (https://www.unpri.org/download?ac=10382)
In the International Labour Organization’s (ILO) 2015 Guidelines for a Just Transition towards Environmentally Sustainable Economies and Societies for All, the ILO emphasizes that the transition to environmentally sustainable economies and societies involves “the pivotal role of employers” and “anticipating impacts on employment, adequate and sustainable social protection for job losses and displacement, skills development and social dialogue, including the effective exercise of the right to organize and bargain collectively.” (https://www.ilo.org/wcmsp5/groups/public/@ed_emp/@emp_ent/documents/publication/w cms_432859.pdf) 
Chevron plans to allocate $10 billion in lower carbon investment and carbon reduction projects by 2028. Its 2023 Climate Change Resilience Report outlined the board’s governance structure relevant to the energy transition and outlined how our company has a process to evaluate facility- and activity-related risks from planning to decommissioning. However, there is no discussion about how stakeholder engagement relates to its risk evaluation and energy transition oversight. This planning needs to include disclosure of time-bound, measurable indicators for meaningful engagement with key stakeholders.
For these reasons, it is imperative that the Board creates the proposed report as a first step towards understanding and mitigating the impact of future plant closings and energy transition on workers and communities where the Company operates.
We urge shareholders to vote “FOR” this proposal.

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