RESOLVED: Shareholders request that Chevron assess and report to shareholders, at reasonable expense and excluding proprietary information, on the company’s approach to mitigating the operational and human rights risks associated with business activities in conflict-affected and high-risk areas (CAHRA).

WHEREAS: Chevron’s Human Rights Policy commits the company to respecting human rights as enumerated in the Universal Declaration of Human Rights and the International Labor Organization Declaration on Fundamental Principles and Rights at Work and adhering to the principles set forth in the United Nations Guiding Principles on Business and Human Rights (UNGP), the Voluntary Principles on Security and Human Rights, and the International Finance Corporation’s Performance Standards;

Chevron acquired Noble Energy in October 2020, including that company’s operations in the Eastern Mediterranean Sea, where gas exploration and extraction activities have led to increasing tensions among Israel, Lebanon, Cyprus, and Turkey concerning their respective claims to gas reserves based on disputed maritime borders;

Chevron announced in August 2020 that it signed an agreement with the Iraqi government to develop one of the country’s largest oilfields in the southern part of the country, expanding the company’s operations beyond the Kurdistan Regional Government in the north;

The Sustainability Accounting Standards Board (SASB) considers proximity to conflict an accounting metric for the oil and gas industry, which should be assessed and disclosed as a material risk for shareholders. Within the same topic, SASB calls for companies to disclose the results of “[d]iscussion of engagement processes and due diligence practices with respect to human rights, indigenous rights, and operation in areas of conflict.”

Investors increasingly view conflict- and human rights-based risks as leading indicators that may materially impact company value and investment performance. According to US SIF’s 2020 Trends Report, conflict risk was the leading environmental, social, and governance criterion among institutional investors representing nearly $6 trillion in assets under management;

To mitigate heightened risks, leading companies conduct human rights impact assessments based on international frameworks, such as the UNGP, which calls on companies to conduct enhanced due diligence in CAHRA due to the widespread and gross human rights violations endemic to such areas.

SUPPORTING STATEMENT: Shareholders seek information, at board and management discretion, through a report that:

● Assesses whether additional policies are needed to supplement Chevron’s current Human Rights Policy to avoid causing or contributing to violations of human rights in CAHRA; and
● Describes the company’s process for conducting human rights impact assessments in CAHRA.