Chevron Investors Call for Climate Disclosure

This is the first of a series on the 2020 shareholder meetings

Chevron Corp.’s busy annual shareholder meeting this year featured seven shareholder proposals, on topics ranging from lobbying, climate, and human rights. Cindy Bohlen of Riverwater Investments and Mary Minette of Mercy Investment Services co-filed the human rights proposal led by Sister Nora Nash, OSF, asking the company to provide a report on Chevron’s effectiveness to prevent, mitigate, and remedy human rights impacts of its operations. We were pleased to have received a vote of 17% for a first-year proposal. Other proposals were presented to the company during the AGM by notable figures: Alec Baldwin, Roger Waters, and Jody Williams, which focused on governance issues, and pointed to Chevron’s 50-year involvement (through its acquisition of Texaco) in toxic pollution in Ecuador. 

Another resolution focusing on climate lobbying garnered a 53%, majority vote. The proposal asked the Company for a report explaining how it ensures its lobbying activities are aligned with the Paris climate accord and the goal of limiting global warming. This majority vote agrees with the investor push for companies to be more transparent about their lobbying activities, especially through their membership in trade associations. 

Recent news highlights why this resolution, and this vote, are critical for the Company. Amid the Black Lives Matter protests, news reports tie Chevron to a public affairs firm urging journalists to examine how green groups were claiming solidarity with black protesters while backing policies which would “hurt” minority communities. Naomi Oreskes, a Harvard University history professor and the co-author of “Merchants of Doubt” said that it is “remarkable that the Company tried to leverage national unrest about systemic racism and police violence to promote an expansion of oil and gas drilling.” While Chevron has denied the claims of being a part of this campaign, it raises the question of Chevron’s public statements supporting the Paris Agreement, while its lobbying activities send the opposite message. 

Additionally, the District of Columbia filed a lawsuit against Chevron and other oil and gas companies  for “systematically and intentionally misleading” consumers about the role their products play in causing climate change.” This lawsuit is of another way, of many, of which stakeholders are trying to hold the company accountable for its actions. 
SGI members are calling on Chevron and other corporations to respect human rights. As a member of the Business Roundtable, Chevron signed on to the new statement of purpose for corporations to serve all stakeholders. It’s time for Chevron to live up to their rhetoric!

2020 Trafficking in Persons Report

The U.S. State Department today (June 25th) released the latest edition of the Trafficking in Persons Report (TIP Report). (We wrote about the 2019 edition here and 2018 here.)

We are particularly pleased that the 2020 edition recognizes the efforts of ICCR:

The Interfaith Center on Corporate Responsibility (ICCR)
based in the United States uses a multi-faith approach from a
different angle. A coalition of more than 300 global institutional
investors with more than $500 billion in managed assets, it
uses the power of shareholder advocacy to engage companies
to identify, mitigate, and address social and environmental
risks associated with corporate operations, including human
trafficking. ICCR members call on companies they hold to
adopt policies banning human trafficking as a key part of
their core business polices, and to train their personnel and
suppliers to safeguard against these risks throughout their
supply chains. ICCR’s Statement of Principles & Recommended
Practices for Confronting Human Trafficking & Modern Slavery
provides guidance to companies to protect their supply chains
from sex and labor trafficking.

2020 Trafficking in Persons Report (p. 25)

SGI members prioritize this work, and this recognition from the State Department’s Office to Monitor and Combat Trafficking in Persons confirms the efficacy of our efforts with corporations.

David Schilling, ICCR’s senior program director for human rights, said, “Whether it is workers trafficked into forced labor in a factory in Bangladesh or on a plantation in Indonesia; whether it is women trafficked for sex in the US or children exploited on-line, the Interfaith Center on Corporate Responsibility’s members utilize their role as shareholders in a range of companies to promote policies and practices to end modern slavery. The framework we use is the UN Guiding Principles on Business and Human Rights which defines what it means for a company to respect human rights, especially for persons made vulnerable by economic systems that marginalize and exploit.”

Pat Zerega, of Mercy Investment Services and chair of the Human Trafficking- Worker Rights leadership team, said:

For several decades, ICCR has been a leader on supply chain issues, and advocacy work on trafficking brought a new aspect to corporate dialogues. Mercy Investment Services’ involvement since the start of this effort includes working domestically with the travel, transportation and tourism industries around corporations training staff to spot trafficking. Resources such as the Celebration without Exploitation toolkit provided the groundwork for investors.

ICCR expanded its focus to labor trafficking, including the development of a Principles for Confronting Human Trafficking and investor tools for issues of ethical recruitment and, more recently, the Investor Alliance for Human Rights resources. These tools enhance the ability of all shareholders to understand the issues and address corporations.

Ranking governments based on their perceived efforts to acknowledge and combat human trafficking, each year’s TIP report includes tiers of troubled countries. The report assigns countries into three tiers. Tier 1 consists of “countries whose governments fully meet the Trafficking Victims Protection Act’s (TVPA) minimum standards.” Below Tier 1, Tier 2 contains countries that may not meet the TPVA standards, “but are making significant efforts to bring themselves into compliance with those standards.” A “Tier 2 Watch List” consists of countries that are similar to Tier 2, but have other issues, such as an increasing number of trafficking cases or a lack of improvement on previously-implemented anti-trafficking efforts. Tier 3 countries are those “whose governments do not fully meet the minimum standards and are not making significant efforts to do so.”

The 2020 report underscores longstanding concern about China, especially in the Xinjiang Uighur Autonomous Region. The report also identified U.S. agricultural workers as particularly vulnerable. As well, the report acknowledges that its compilation was hindered by COVID-19, even as COVID-19 makes more people vulnerable to trafficking. A recent webinar put it well: “In many places, human traffickers, sadly, are the first responders to the pandemic.” While grateful for the recognition from the State Department, no doubt, we ICCR members must renew and redouble our efforts.

SGI Statement of Solidarity

Milwaukee, WI, June 1, 2020: Members of Seventh Generation Interfaith Coalition for Responsible Investment are traumatized and outraged by recent incidents of police brutality in our neighborhoods and cities that manifests individual and institutional racism. We mourn the recent police killings of George Floyd and Breonna Taylor and the murder of Ahmaud Arbery, and stand in solidarity with the victims of systemic racial injustice in the United States. While recent events disclose injustice in law enforcement and our criminal justice system, we recognize that institutional racism exists as well in our corporations, our economy and throughout our society.

We lament that years of protests, demonstrations, and marches have failed to bring an end to the suffering, the dehumanization, the oppression, and the loss of so many precious lives. So many people of color who historically have been disenfranchised continue to experience economic inequities, sadness and pain; a pattern seen as well in the path of the COVID-19 pandemic, disproportionately affecting people of color in the number of cases and fatalities.

We recognize our obligation to work as institutional investors, as citizens, and, most importantly, as people of faith to address and change unjust and immoral cultural patterns and social systems. We commit ourselves to listening to the stories of those subjected to institutionalized racism to more authentically accompany them. Through the lens of faith, we will reform our investment practices and challenge companies to increase diversity and address their negative impacts on people of color. We recommit to building a more just and sustainable world for our brothers and sisters who are most vulnerable.

Earth Day

While the term “climate change” had not been invoked by April 22, 1970, awareness of human involvement changing Earth induced a fear mixed with hope. Scientists could not see the future of our planet, and newspaper headlines at the time captured concern for the environment and for peace as protests surrounding the Vietnam War were met with groups putting cars on trial

And as most of the United States currently sits in the unknown because of the COVID-19, the Earth keeps turning. 

But with EPA rollbacks during a global pandemic, the US withdrawing from the ever-important Paris Agreement, and the impacts of the BP oil spill still being felt ten years later, it can be difficult to find those positives. But they do exist.

Many improvements have been made since that first Earth Day, now 50 years ago. The current National Geographic depicts how life expectancy has increased along with food production, more people have access to clean water and electricity, and pollution levels (overall) have fallen. Even during this crisis, we see renewable energy, like solar and wind, growing in capacity.

Coupled with this uncertainty of the environment, for me comes a feeling of nostalgia: remembering the saplings handed out to us in elementary school, thinking about the recycling program my grandmother started in her town, visualizing the passion Denis Hayes had in organizing the first Earth Day. These individual acts, small notions, and world movements all exude a hope of possibility of positive change. From a young age, environmental activists like Severn Suzuki, Greta Thurnberrg, and Delaney Reynolds witness to a heartfelt passion as vibrant as Hayes’. Students are urging their universities to divest from fossil fuels. Community gardens push back against the concrete that dominates our cities.  

On the first Earth Day, 50 years ago, New York City’s Mayor Lindsay put it simply; “Beyond words like ecology, environment, and pollution there is a simple question: Do we want to live or die?”