Petroleum development in ecologically sensitive and biologically rich protected areas poses material financial, climate, and reputational risks. The Arctic National Wildlife Refuge, for example, is home to over 200 bird species, 42 species of fish, and 45 mammals, including four threatened species protected under the Endangered Species Act. The Bureau of Land Management calculated that burning all the oil in the Arctic Refuge would release over 4.3 gigatons of CO2e. At its 2020 Annual Meeting of Stockholders, Chevron declared its support for exploration and development in the Arctic National Wildlife Refuge Coastal Plain. Chevron and BP have the first and only test well in the Refuge. While Chevron did not bid at the initial Arctic Refuge lease sale, the Journal of Petroleum Technology noted in October 2021 that Chevron does not appear to be leaving the scene anytime soon, in reference to Alaska’s North Slope. Pursuit of drilling and related activities in the Arctic Refuge could expose Chevron to considerable material financial risk: • Regulatory: The political landscape creates uncertainty for developing the Refuge; any developments could become stranded assets. The Interior Department has suspended current oil and gas leases in the Refuge, and the House of Representatives has passed legislation including provisions for the repeal of the Arctic Refuge Oil and Gas Leasing Program. • Liability: In its 2020 10-K, Chevron identifies liability for accidental, unlawful discharge even without regard to the company’s causation of or contribution to the asserted damage as a risk, and acknowledges it is selfinsured to a substantial extent for potential liabilities. The Trans-Alaska Pipeline will transport oil from the Arctic Refuge. Oil spills have occurred along the pipeline and around Prudhoe Bay, the pipeline’s northern terminus, including a three-week-long spill in 2020. • Price risk: Oil spills negatively affect stock prices. Chevron’s share price declined 8.5% in the weeks after a public announcement of an 800,000 gallon spill at a Chevron oil well. BP’s stock dropped 54% as a result of the Deepwater Horizon oil spill. • Constrained access to capital: Six major American banks now refuse to finance oil and gas exploration in the Arctic Refuge. • Reputational: Reputationally damaging events have financial consequences. BP lost 38% of its American clients after the 2010 oil spill. 67% of Americans oppose drilling in the Arctic Refuge. In 2020, 259 organizations, representing more than 27 million members, launched a campaign against Chevron regarding Arctic drilling. Beyond the Arctic Refuge, drilling anywhere in the Arctic threatens Indigenous rights, impacts fragile ecosystems, and exacerbates climate-related risks.