Strong Shareholder Vote Calls on Chevron to Adopt Human Rights Policy

(April 26, 2007) The Jesuit-led shareholder resolution calling on Chevron Corporation to develop a comprehensive, transparent and verifiable human rights policy received a 28 percent favorable vote at the Company’s annual general meeting in San Ramon, CA, on April 25^th. This represents an increase over last year’s significant 24 percent vote on the Human Rights Resolution.

The Wisconsin Province Jesuits led the resolution, co-filed by 32 other religious and social institutional investors, most of whom are members of the Interfaith Center on Corporate Responsibility (ICCR). Among the co-filers were all of the US Jesuit provinces and Upper Canada, in addition to Creighton and Marquette universities.

“This is a very strong vote,” said John Sealey, the Provincial Assistant for Social and International Ministries in the Wisconsin Jesuit Province. “The threshold to keep a resolution alive in the second year is 6%. Building on last year, this strengthening vote maintains shareholder pressure to move forward on Human Rights,” he said.

With the support of numerous co-filers, Jesuits have led the Chevron human rights dialogue for the past three years, encouraging the adoption and deployment of a transparent, verifiable and comprehensive human rights policy to govern operations in the 180 countries where Chevron operates. The group of investors maintain that human rights must include provisions for: sustainable development, consent of host communities, environmental stewardship, human rights training for employees and contracted security policies, and healthcare access.

“We believe it is vital to work within the corporate structure to attain positive change,” according to John Kleiderer, policy director at the national Jesuit Conference. “By owning shares and having a seat at the table during on-going dialogues and annual meetings, we have a channel to promote human rights with Chevron.”

Prepared remarks for the Jesuit supporting statement at the annual meeting observe:

*Institutional Shareholder Services recommends the Human Rights Resolution and identifies the shortcomings of the Chevron’s current approach including the neglect of critical areas such as “implementation, performance metrics, or monitoring associated with the company’s human rights policies. Such disclosure is common at companies operating in industries or markets that are exposed to higher levels of risk because of human rights violations, controversy, and/or litigation.”

*John Ruggie, the UN Special Representative on Human Rights and Transnational Corporations, testified in February 2007, that “Some interpretations [of international human rights instruments] are so elastic that the standards lose meaning, making it difficult for the company itself, let alone the public, to assess performance against commitments.”

*The Nigerian Catholic Bishops recently issued an extensive report, The Travesty of Oil and Gas Wealth, which characterizes the current Niger Delta context: “In such an unstable atmosphere marked by flagrant human rights abuses and state repressions, violence profoundly assumes a self-fulfilling pattern that is inimical to peace, stability and national development…By investing so heavily on a network of local patrons, oil companies establish a self-serving divide-and-rule structure that often plays neighboring communities against each other.” (p. 41). Obviously, our proponents do not contend that Chevron alone has not created such turmoil, but the company’s sizeable presence in such an atmosphere requires an assertive and pro-active internal policy to avoid future human rights abuses. Such a policy will also begin to redeem the previous cycle of violence, poverty and resentment. Establishing greater social license to operate is crucial for the company and for host communities. Delta communities are among the poorest in Nigeria where per capita daily income is about $1US, in the midst of such mineral wealth. The Bishops report puts forth even and workable recommendations not only for oil and gas companies but also for the other participants in the Delta.

*Proxy Governance, which also recommends voting for the resolution, reiterates its concerns at the company’s slow pace of implementation, especially the lack of transparency regarding integration of human rights into the management and control systems.

*Arvind Ganesan of Human Rights Watch has observed, "Ten years ago, companies did not feel like they needed to come out with a human rights policy and today they all do." (Reuters Sept 27, 2006)

“As an alliance of faith-based investors, we believe a well-crafted policy will establish the underlying conditions so that Human Rights abuses do not occur in the first place,” said Anna Bradley, consultant for Socially Responsible Investing to the national Jesuit Conference. “We believe this is the wiser course than simply responding to, and trying to litigate, human rights crises which could have been avoided. As public consciousness and scrutiny regarding human rights has grown, we encourage Chevron to aspire to its own pronouncements of leadership by promoting and protecting the full spectrum of human rights.”

Reinforced by a strong vote of support, the team of shareholders led by the Jesuits will maintain pressure on the Company to develop and implement a robust human rights policy.