A shareholder petition from environmental policy activists As You Sow asking a major oil company for additional climate change information has been upheld by the Securities and Exchange Commission.
The approval means the proposal will be voted on by shareholders during the upcoming proxy voting season, As You Sow announced Thursday.
The As You Sow shareholder proposal asked Chevron for a clear and transparent accounting of how a adhering to a net-zero greenhouse gas emission plan by 2050 would affect its operations, performance and effect on shareholders.
The proposal requested that Chevron issue an audited report to shareholders on whether and how the significant reduction in fossil fuel demand envisioned in the International Energy Agency Net Zero 2050 scenario will affect its financial position and underlying assumptions for consumption.
The proposal comes on the heels of other major oil and gas companies, such as BP, Shell, and Total, taking dramatic write downs based on changes in financial estimates when aligning their operations with a net-zero scenario, As You Sow said.
Chevron unsuccessfully fought the proposal at the SEC, arguing that its third Climate Change Resilience Report, issued this year, meets the request, As You Sow said. “As set forth in As You Sow’s brief, Chevron's current reporting fails to address investors' critical concerns,” the organization said.
Danielle Fugere, president of As You Sow, said in a statement, “We agree with the SEC that Chevron has not yet addressed the critical issue of whether and how a significant reduction in fossil fuel demand from the world’s transition to net zero emissions by 2050 will affect its future financial position and the value of its assets. It is critical that the company disclose the expected climate-related impacts on its operations and performance, especially those which put the company and investors at risk.”