Chevron shareholders rejected two climate change resolutions at the oil giant’s annual meeting Wednesday, upsetting activists who are pressuring fossil fuel companies to curb crude oil production and reduce greenhouse gas emissions.
One of the proposals asked for the company to “better monitor, mitigate, and reduce its methane emissions in light of the significant climate change impact of methane and Chevron’s failure to disclose action to reduce methane in comparison to its peers,” according to a summary.
[Related: Oil, natural gas industry spends billions to reduce greenhouse gas emissions, report says]
Methane, the main component in natural gas, is more potent than carbon dioxide, although methane emissions are relatively short-lived. Most climate scientists blame emissions from burning fossil fuels for driving manmade climate change.
The second resolution requested that Chevron disclose a plan to its shareholders on how it will transition to more renewable energy in line with the Paris climate deal.
As You Sow, a nonprofit group, filed the resolutions on behalf of some Chevron investors.
The resolutions, which are non-binding but important symbolically, needed to be approved by a majority of shareholders to be adopted. The methane resolution fell short, with 45 percent voting in favor of it.
The failure of the climate resolutions comes after Shell refused to commit to similar demands made by environmentalists, who are increasing pressure on oil companies this week to curb all fossil fuel development by 2050.
But energy companies are starting to respond to that pressure in other ways, part of an effort by the industry to show it is committed to combating climate change even as the Trump administration rolls back regulations forcing them to.
Large energy companies including Shell, Exxon and BP signed a pledge last year to reduce emissions of methane from natural gas production.
Chevron was originally the only major U.S. oil company to not join the pledge. But in the days leading up to its annual meeting, Chevron signed on.
The companies didn’t make any specific emissions reductions targets, but they promise to “continually reduce methane emissions; advance strong performance across gas value chains; improve accuracy of methane emissions data; advocate sound policies and regulations on methane emissions; and increase transparency.”
Advocates are calling on Chevron to do more.
“This is an important first step, but joining a voluntary program like the Guiding Principles is no substitute for demonstrated methane reduction action,” said Danielle Fugere, president of As You Sow. “Chevron has lagged behind its peers on implementing and disclosing methane best practices for too long. Shareholders today recognize Chevron’s progress, but underscore the importance of demonstrating on-the-ground change on this important climate change issue.”
