CHEVRON CORPORATION | Racial equity audit at CHEVRON CORPORATION

Status
47.50% votes in favour
AGM date
Resolution details
Company ticker
CVX
Lead filer
Investor Advocates for Social Justice
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
Shareholders request that the Board of Directors commission and publicly disclose the findings of an independent racial equity audit, analyzing if, and how, Chevron’s policies and practices discriminate against or disparately impact communities of color. The report should clearly identify, and recommend steps to eliminate, business activities that further systemic racism, environmental injustice, threaten civil rights, or present barriers to diversity, equity, and inclusion (DEI). Input from impacted workers, community members, customers, or other relevant stakeholders should inform the audit and report. The report should exclude confidential and proprietary information, as well as information relevant to any pending legal proceeding or threatened proceeding of which Chevron has notice.
Whereas clause
Racial inequity and environmental racism are systemic risks that threaten society and the economy.1 Companies that fail to correct policies and practices deemed to be racist, discriminatory, or furthering inequities face legal, financial, reputational, and human capital management risks. Companies that commit to holistically advance racial justice and foster DEI benefit from stronger performance, employee satisfaction, innovation, and positive social impact. 2

Chevron is one of the highest greenhouse gas emitting companies in the world.3 Its emissions contribute to the climate crisis, which disparately impacts people of color and furthers systemic racism.4 Chevron’s operations, discharges, and leaks disproportionately burden communities of color with pollution and human health risks.5

For example, 80% of residents living adjacent to Chevron’s Richmond, CA refinery are people of color, and they experience higher rates of cardiovascular disease, cancer, and asthma.6 Chevron’s Richmond facility is the city’s largest polluter and the company has spent millions of dollars to influence city politics and funding.7 Chevron also finances the Richmond police,8 which has been linked to police brutality.9 Beyond Richmond, Chevron finances police groups in major U.S. cities and Chevron representatives serve on the boards of Houston and Salt Lake City police foundations.10. Additionally, Chevron faces scrutiny for financing United States politicians with failing civil rights grades issued by the NAACP.11.

Chevron’s business disparately impacts Indigenous Peoples. Over 60% of publicly reported abuses from Chevron’s operations impacted Indigenous Peoples, including violation of land rights, allegations of genocide, violence against Indigenous women,12 and widespread environmental damage and human rights violations in Ecuador13., Indonesia14., Nigeria15, and the United States16.

While Chevron has made DEI and philanthropic commitments to support Black employees and communities, its practices have historically exacerbated racial inequities.17 An independent 2021 report documented dozens of outstanding legal cases against Chevron for alleged environmental damage and human rights violations, noting that the company has only paid .006% of associated fines, court judgements, and settlements.18 A racial equity audit would help Chevron identify, prioritize, remedy, and avoid adverse impacts on people of color while reducing reputational risk and liabilities.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
KBI Global Investors For
LocalTapiola Asset Management Ltd For A vote FOR this proposal is warranted, because a racial equity audit would shareholders better evaluate the company’s management of potential racial equity or human rights concerns, including from pollution or GHG emissions, that are associated with its operations.
Universities Superannuation Scheme - USS For

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