5.23.2003 ET

(CSRwire) MIDLAND, TX - A shareholder resolution requesting that ChevronTexaco adopt and report on a plan to invest in renewable energy received a record 32 percent of the vote today, up from 9.6% support for a similar global warming resolution voted on at Chevron in 2001. The vote signaled growing mainstream shareholder concern about the risks of overdependence on oil –from climate change to energy security concerns- and interest in tapping competitive economic opportunities in developing renewables. The filers also expressed concern that major competitors Royal Dutch Shell and British Petroleum have significantly increased their lead in the development of renewables.

With a market capitalization of $72 billion and 1.07 billion shares of common stock outstanding, the California-based ChevronTexaco is one of the largest publicly traded companies in the world and the fourth largest oil company. It ranks #7 on the Fortune 500, and #32 on the Financial Times Global 500.

The resolution was sponsored by the Sisters of St. Dominic of Caldwell, NJ and more than 20 other institutional investors as part of a larger global warming shareholder campaign coordinated by the Interfaith Center on Corporate Responsibility (ICCR), a group of 275 religious shareholders and pension funds, and CERES, a coalition of investors, including the State of Connecticut, New York State and New York City pension funds, and major environmental organizations representing over $300 billion in assets.

The resolution requests the Board to “prepare a report (at reasonable cost and omitting proprietary information) by September 1, 2003 explaining how the company will respond to rising regulatory, competitive and public pressure to significantly develop renewable energy sources.”

The resolution cites growing support for renewables worldwide, stating that in 2002, renewable energy was the fastest growing energy source in the world again, with growth rates continuing to hover in the 25%-30% range. It also cites renewable energy mandates now in force in fifteen countries and thirteen states, with more on the way.

“Although the meeting was held in Midland, TX, far from corporate headquarters and with no board members in attendance, shareholders’ voices were heard loud and clear in their desire for this company to move away from oil,” said Sr. Patricia Daly, the primary filer of the resolution. “Chevron’s competitors are managing risk by moving into renewables. We’d like to see Chevron catch up with the rest of the industry.”

Doug Cogan, of the Investor Responsibility Research Center, which advises major institutional investors on proxy issues, said: “This is the highest vote ever for a renewable energy or climate change-related proposal. In the past two years, investor support for these resolutions has more than doubled.. No company with a market cap the size of ChevronTexaco and such a large shareholder base has ever had that many votes cast against management on an energy proposal. History was made today.”

Mindy Lubber, Executive Director, CERES, said: “This vote shows that this is not a radical or fringe concern. Prudent risk management and plain common sense tells us that if your competitors are moving in a certain direction, if the world is changing, and if your product is causing grave risk to the health of the economy, the planet and its people, it would be in the company’s best interest to move into the twenty-first century.”

# # #

2003 GLOBAL WARMING SHAREHOLDER CAMPAIGN

Fact Sheet – May 22, 2003

Which companies were targeted with global warming resolutions in 2003?

Shareholders affiliated with CERES and the Interfaith Center on Corporate Responsibility filed a record 29 global warming resolutions in the 2003 proxy season, up from 19 filings last year (which was the previous record). The 29 resolutions filed on global warming are with 26 companies (22 US companies, 4 Canadian), with 4 vehicle manufacturers, 6 electric power companies, 8 oil companies, and 10 other large companies.

Early results indicate record levels of support: Shareholders won 32 percent at ChevronTexaco (triple the support from last year), 27 percent at AEP (this is the first year the resolution went to a vote and the highest vote ever for a global warming resolution at an electric power generator); 24 percent at TXU (one of the top 5 CO2 emitters in the electric power sector); Shareholders won 23 percent at GE, up from 19 percent last year, and a new record for global warming resolutions at GE.

The list of companies that shareholders filed global warming resolutions with is as follows (* = resolution withdrawn or omitted by SEC; if the vote has already been held, the % in favor of the resolution is in parentheses

Auto: General Motors (6/3)

What do the resolutions ask for?

The resolutions all seek more disclosure from the companies about how they are responding to the business risks and opportunities of global warming, as well as the companies’ efforts to quantify and reduce their greenhouse gas emissions. The resolutions vary in their wording from company to company:

Resolutions with auto companies: The resolution at GM asks that the companies report to shareholders on "(a) the estimated total annual greenhouse gas emissions (i) from our company’s own operations and (ii) from its products; (b) how the company can significantly reduce greenhouse gas emissions from its fleet of vehicle product (using a 2002 baseline) by 2012 and 2020; and (c) an evaluation of what new public policies would enable and assist the company in achieving these emission reductions."

Resolutions with electric utilities: The resolutions at American Electric Power, PG&E, Southern and TXU ask the utilities to report to shareholders on: "(a) the economic risks associated with the company’s past, present and future emissions of carbon dioxide, sulfur dioxide, nitrogen oxide and mercury emissions, and the public stance of the company regarding efforts to reduce these emissions and (b) the economic benefits of committing to substantial reduction of those emissions related to its current business activities (i.e. potential improvement in competitiveness and profitability)."

Oil companies: There are two resolutions at ExxonMobil. The first resolution asks ExxonMobil to report to shareholders "describing the operating, financial and reputational risks to the company associated with climate change and explaining how the company will mitigate those risks." The second resolution asks ExxonMobil to report to shareholders "explaining how the company will respond to rising regulatory, competitive and public pressure to significantly develop renewable energy sources." The resolution at ChevronTexaco asks for a report to shareholders "explaining how the company will respond to rising regulatory, competitive and public pressure to significantly develop renewable energy sources." The resolution at Petro-Canada asked for a report "describing the operating, financial and reputational risks to the company associated with past, present and future greenhouse gas emissions from its operations and products."

Resolutions at Citigroup: There are two global warming-related resolutions at Citigroup. The first resolution asks that "the Board move to implement policies that reflect the economic and environmental commitment to confronting climate change. Such a commitment would include (1) a publicly available audit of carbon exposure and (2) a feasibility study including timeline of the replacement of projects in endangered ecosystems and those that negatively impact resident indigenous people with projects that advance renewable energy and community based sustainable development and (3) an itemization of all such projects." The second resolution asks that "the Board move to produce a strategy that positions Citigroup as an environmental leader by meeting or beating the industry’s best practices regarding environmental protection including old growth forest protection and climate change."

Resolution at General Electric: The resolution at General Electric asks the company to report on "the greenhouse gas emissions from our company’s own operations and products sold, including: steps the company can take to reduce emissions of greenhouse gases substantially; recommendations for steps the appliance manufacturing industry can take to collectively reduce emissions of greenhouse gases substantially, and plans, if any, to support energy-efficient appliance standards."

For more information please contact:

Nicole St. Clair , CERES
+1-617-247-0700 x 20

For more CSR news and information from this organization:

Corporate Social Responsibility Profile for Ceres

More CSR headlines for news category

Environment

Video, commentary & research for

Environment