Analyst Note| Allen Good, CFA |
Approximately 61% of votes cast supported a shareholder proposal for Chevron to reduce Scope 3 emissions of its energy products in the medium- and long-term future, as defined by the company. The proposal neither defined precise timelines nor imposed methods for doing so. Chevron already has in place Scope 1 and 2 reduction targets for 2028. Scope 3 emissions present a different challenge, however, given their relative amount and the fact they occur during use or combustion of oil and natural gas that takes place outside the company’s control. In 2019, Chevon’s Scope 3 emissions composed 91% of its emissions from total products sold.