Chevron Shareholders to Vote on Accident Risk Proposal

A shareholder proposal to be voted on during the May 30 annual meeting of Chevron Corporation would, if approved, require the company’s board of directors to prepare a report within 90 days of the meeting that lists steps Chevron has taken to reduce accidents. The proposal’s supporting statement mentions the Deepwater Horizon explosion and spill in 2010, the Tesoro refinery explosion in Anacortes, Wash., that killed seven workers that year, and OSHA’s national emphasis program for petroleum refineries.

It also mentions OSHA fines issued to Chevron and potential fines for an oil spill off the Brazilian coast.

“In our opinion, the cumulative effect of petroleum industry accidents, safety violation citations from federal and state authorities, and the public’s heightened concern for safety and environmental hazards in the petroleum industry represents a significant threat to our Company’s stock price performance,” the statement says. “We believe that a report to shareholders on the steps our Company has taken to reduce the risk of accidents will provide transparency and increase investor confidence in our Company.” The board recommends that shareholders vote no on the proposal. Its statement says the board believes the processes and steps “are in place and functioning to provide effective oversight of risk management.” The statement adds that the processes include Chevron’s Operational Excellence Management System, which meets both ISO 14001 and the Occupational Health and Safety Assessment Series (OHSAS) 18001 standard; periodic Operational Excellence audits; a process safety management approach consistent with the Center for Chemical Process Safety’s Guidelines for Risk Based Process Safety; and a focus on safe drilling operations through well design, training, and a structured management of change process.

Another shareholder proposal to be voted on at the meeting requests that at least one independent member of the board be appointed who has a high level of expertise and experience in environmental matters related to hydrocarbon exploration and production. The board likewise opposes this proposal, saying the company’s operations are environmentally sound and having a special-purpose director “is not a good corporate governance practice.” The meeting will begin at 8 a.m. PDT in San Ramon, Calif.

Chevron on April 27 reported its first quarter 2012 earnings were $6.5 billion versus $6.2 billion a year earlier. For all of 2011, it posted @6.9 billion in earnings (up 41.4 percent from the prior year) even though net oil and natural gas production dipped slightly.

Download Center

  • Monitoring and Reporting on Air Emissions for Regulators and the Real World

    When it comes to managing compliance and regulatory issues surrounding air emissions, there are no easy jobs. With interviews from practitioners from American Electric Power, Red Cedar Gathering, Trinity Consultants, and Cority, this eBook provides practical advice to advance your air emissions monitoring and reporting programs.

  • What Every EHS Professional Should Know About ESG

    Join experts from Arcadis and Cority on April 27th to learn the most common ESG reporting frameworks and how technology can help you improve reporting efficiency, identify areas for improvement, and create defensible audit trails.

  • Green Quadrant EHS Software 2021

    Read the new report by independent analyst firm, Verdantix, to get an unbiased comparison of the 22 most prominent EHS software vendors in the industry.

  • RFP Template for Waste Management Software

    Learn the essential questions to ask when evaluating waste management software solutions with this free, ready-to-use RFP template

  • 5 Keys to Best-in-Class Chemical Management

    Running a safe chemical program is challenging and complex: from knowing what's on-site to proper handling and disposal - all while navigating regulatory changes. Learn the best ways to mitigate chemical risk, get the most value out of your data, and gain buy-in for a chemical management solution.

Featured Webinar