Greenhouse Gas Reduction - Science-Based Targets
2016 – Chevron Corp.
WHEREAS: To mitigate the worst impacts of climate change and limit warming to below 2 degrees Celsius (2°C), as agreed in the Cancun Agreement, the Intergovernmental Panel on Climate Change (IPCC) estimates that a forty to seventy percent reduction in greenhouse gas (GHG) emissions globally is needed by 2050, relative to 2010 levels, entailing a U.S. target reduction of 80 percent.
The 2014 IPCC Synthesis Report warns that global warming will have “severe, pervasive and irreversible impacts for people and ecosystems.” The costs of failing to address climate change are significant and are estimated to have an average value at risk of $4.2 trillion globally.
At least 178 countries submitted Intended Nationally Determined Contributions (INDCs) to the UN detailing plans to cut GHG emissions in preparation for the December 2015 Paris Climate Negotiations. Commitments on record should reduce projected warming from 4°C to an estimated 2.7-3.5°C, and these commitments may be “ratcheted” up to align with 2°C warming.
Corporate leaders, including ten oil and gas companies, support a policy framework to limit warming to 2°C. Companies across sectors are establishing “science-based” GHG reduction targets to limit emissions as needed to align with 2°C warming. Establishing science-based GHG targets corresponds with the growing practice among energy companies of reporting on the resiliency of their portfolios to the International Energy Agency 450 (2°C) scenario, such as that produced by BHP Billiton.
Chevron’s Greenhouse Gas Management Activities have not adequately managed or reduced greenhouse gas emissions: Chevron’s 2015 operational emissions “target” of 57 million metric tons CO2 equivalent is higher than its 2014 emissions and is the same as the baseline established in 2010. Chevron’s disclosure through CDP and its annual target do not offer sufficient specificity to allow investors to assess long-term risks associated with its emissions management. Lastly, Chevron must manage emissions from combustion of its products, which were 358 million metric tons of CO2 equivalent in 2014, accounting for over 85% of its GHG emissions.
RESOLVED: Shareholders request that the Board of Directors adopt long-term, quantitative, company-wide targets for reducing greenhouse gas emissions in products and operations that take into consideration the global commitment (as embodied in the Cancun Agreement) to limit warming to 2°C and issue a report by November 30, 2016, at reasonable cost and omitting proprietary information, on its plans to achieve these targets.
Proponents believe Chevron’s actions to fulfill the policy might:
· Include short-term benchmarks and long-term reduction goals, with key performance indicators;
· Include absolute GHG reduction goals for operations, detailing targets for reducing fugitive methane emissions and flaring, improving energy efficiency, and increasing use of renewable energy;
· Include GHG goals for the full slate of petroleum products, co-products, and any other energy products that Chevron produces and aim to reduce the overall carbon intensity of Chevron’s total energy portfolio (measured in CO2-equivalent grams per unit of fuel energy sold), allowing Chevron to meet increasing demand for energy while reducing GHG emissions.