Socially Responsible Investing

Invest for Change

Jesuit-led shareholder movement advocates Chevron to develop and implement Human Rights Policy

(May 28) SAN RAMON, CA – The Jesuit led HUMAN RIGHTS resolution received a strong 24% vote at Chevron’s annual stockholder meeting.

For the past four years, Jesuits and religious investors have engaged Chevron Corporation (CVX) on the need to develop a comprehensive, transparent and verifiable human rights policy to deploy throughout the 180 countries where they operate. The National Jesuit Committee for Investment Responsibility (NJCIR) with the support of the US and English Canada Jesuit Provincials, have focused on Human Rights as a core area of shareholder advocacy. This issue coincides closely to Jesuit apostolic concerns regarding the marginalization of Africa, the rights of indigenous people, economic justice and conflict & violence.

Led by the Wisconsin Province, this growing movement with Chevron now includes 30 institutional investors including every Jesuit province mentioned above, Creighton University, University of San Francisco and Gesu Parish (Milwaukee). In addition, many other religious congregations and two Catholic healthcare networks have filed their support. Along with Chevron, Jesuit provinces are also leading corporate dialogues with Monsanto (Missouri Province), Bristol Myers Squibb (New York Province), Occidental Petroleum (California Province) and OM Group (Detroit Province). Chevron is the only Jesuit-led resolution that went to shareholder vote this year.

Proponents appreciated the opportunity to interact with Chairman David O’Reilly and other Chevron board members before the meeting and also noted Mr. O’Reilly’s signal that Chevron is committed to the human rights dialogue with shareholders.

The shareholder coalition acknowledges some hopeful Chevron human rights initiatives over the past year, such as additional training, development efforts in the Niger Delta and the inclusion of a human rights statement in the Business Code of Conduct. However, Wisconsin Provincial Tom Krettek, S.J. maintains, “We believe the Company’s various human rights activities would achieve greater impact as a comprehensive policy with specific objectives, time frames, management accountability, performance metrics, guidelines, evaluation and reporting procedures for operating in high-risk environments.”
 
In her remarks at the annual meeting, Jesuit consultant for Socially Responsible Investing, Ms. Anna Bradley, referenced the work of UN special representative on Human Rights and Transnational Corporations, Dr. John Ruggie, “Companies need to adopt a human rights policy.
Broad aspirational language may be used to describe respect for human rights, but more detailed guidance in specific fundamental areas is necessary to give those commitments meaning.” 

Speaking in support of the Jesuit Human Rights resolution at the annual meeting, Fr. John P. Fitzgibbons, S.J. (University of San Francisco – USF – Vice President for Administration and Dean of the College of Professional Studies) referenced a recent USF law school symposium The Future of Corporate Accountability and Oversight which included panelists from extractive industries, investors and advocates from the crossroads of business and human rights. Fr. Fitzgibbons noted that the sustained and sizeable support for the resolution demonstrates that “the investment community is awakened to human rights and anticipates action and leadership from the board.”

While religious investors are clearly motivated by the humanitarian concerns, they must make a convincing fiduciary case to implement policy change on the corporate level. To this end, the resolution again received the support of two of the major proxy advisory services, Institutional Shareholder Services and Proxy Governance. Jesuit Conference Policy Director John Kleiderer adds, “This is not only the right thing to do, but it’s smart business. A human rights policy will address threats to shareholder value before they arise.” Furthermore, the list of co-filers has steadily grown over the years.

The energy sector is under mounting scrutiny for human rights practices. Increasingly, oil and gas resources are located in conflictive, repressive and deprived locations which can make operating environments more volatile. Only two weeks ago, a consumer campaign was launched against the French oil and gas company TOTAL, referencing human rights abuses, revenue transparency concerns and social-environmental impacts. 

The coalition also maintains that the establishment of a Human Rights policy will improve Chevron’s social license with host communities and position the company as partner of choice for all stakeholders.

John Sealey (Provincial Assistant for Social and International Ministries, Wisconsin province) added that Jesuits and co-filers will continue to press the company. “This effort is simultaneously in Chevron’s long-term interest as well the host communities who shoulder the costs but rarely realize the rewards of petroleum wealth. We are particularly grateful for the support of so many religious investors who bring such insight and on-the-ground perspective to our conversations with the company.”

NJCIR chair Fr. Mark Hallinan, S.J. (Provincial Assistant for Social Ministries, New York Province) offers a vision for the work ahead, “We hope that Chevron will work with us to transform their current human rights statement into a policy that will be fully integrated into all company operations.”

Prayer request for Jesuit shareholder advocacy
April, 2008

At the recent 35th General Congregation of the Society of Jesus, Pope Benedict XVI included this instruction to world-wide delegates:

“I encourage you to continue and renew your mission among the poor and for the poor. Unfortunately new causes of poverty and exclusion are not lacking in a world marked by grave economic and environmental imbalances, processes of globalization, caused by selfishness rather than by solidarity, by devastating and absurd armed conflicts…It is therefore natural that whoever wishes to make himself a companion of Jesus, really share the love of the poor. For us the choice of the poor is not ideological but is born from the Gospel. The situations of injustice and poverty in the world of today are countless and dramatic and it is necessary to try to understand and combat in the heart of man the deeper causes of the evil that separates him from God.”
(February 21, 2008)

One concrete strategy to advance this apostolic directive has been shareholder advocacy. While our influence with foreign governments in lesser developed countries can be distant, we do have direct access to North American corporations that do business in these regions through our investments.

On May 28, the Jesuit-led resolution will again be considered at Chevron’s annual shareholder meeting. Starting April 11 and in the weeks prior to the meeting, Chevron shareholders will be casting their votes regarding this resolution. We petition all Jesuit institutions and friends of the Society to engage in two actions:  (1) If you own Chevron stock, vote FOR the Jesuit-led shareholder Resolution to develop a Human Rights policy (Item # 5 on the Proxy Ballot); (2) Pray that decision-makers at Chevron corporate leadership may see that their social license and long-term interest are best served by protecting human life and promoting the human potential of the host community.

In lands which are resource-rich, the rewards of these natural gifts have not been shared by all and ironically mineral wealth has often worsened the situation of people living near the resources. The title of recent 200-page report by the Nigerian Catholic Bishops says it all, “The Travesty of Oil and Gas Wealth.” Through civil conflicts, corruption and environmental damage, the living conditions of host communities often deteriorate. Royalties and rents paid to the central governments are often misdirected, lost or wasted. Sometimes civilians are caught in the violent clashes between armed factions, including contracted security forces which are needed to put down any threat to company operations. While host governments have a responsibility to their own citizens, multinational companies also have a vital role given their influence and their sizeable footprint in these regions. The religious community brings the earned trust of host communities and can help provide a space for dialogue on issues.

U.S. and Canadian Jesuit Provinces are united in our shareholder advocacy promoting human rights and global health. Jesuit provinces are currently leading shareholder engagements with Chevron, Bristol Myers Squibb, OM Group, Monsanto and Occidental Petroleum.

Led by the Wisconsin Jesuits, the shareholder dialogue with Chevron has been underway for almost four years. We respectfully encourage Chevron to adopt and deploy a transparent, verifiable and comprehensive human rights policy to govern their exploratory, extractive, refining and distribution operations in the 180 countries where they operate. We maintain that human rights must include provisions for: sustainable development, consent of host communities, environmental stewardship, human rights training for employees and contracted security providers, and healthcare access. Our shareholder votes have been increasing over the years (most recently winning a 27% FAVORABLE vote for our resolution at last year’s annual meeting). In addition, our co-filer list has grown to now include 29 religious investors as well as the support of independent proxy evaluation groups who agree with us that such policy is simultaneously good ethics and serves the long term business interest of Chevron, not to mention the host communities affected by their operations.

Due to Chevron’s presence in Burma, Nigeria and other volatile regions, the company has been under increased public scrutiny regarding their human rights record.

In light of our growing shareholder movement, Chevron submitted a legal petition to the Securities and Exchange Commission (SEC) in January 2008 to nullify our resolution claiming that the company has made some recent progress in the area of Human Rights. In response, we prepared a legal counter position demonstrating that their existing practices fall short on implementation and do not encompass the full scope of Human Rights. On March 31, the SEC ruled in our favor and therefore our resolution must appear on the proxy and be considered at the annual meeting. The ruling would also seem to support our position that Chevron’s current efforts fall short of what a comprehensive Human Rights policy could provide.

We are thankful for the U.S. and Canadian Jesuit provincials who have unanimously supported this effort, as well as the other religious and social investors who have co-sponsored our Human Rights resolutions including Creighton University, Marquette University, University of San Francisco, Gesu Parish (Milwaukee). We enthusiastically invite others to consider joining this effort, which is not limited to Chevron. We pray that decision-makers at the SEC, as well as corporate leadership within and beyond the energy sector, may see that their social license and long-term interests are best served by protecting human life and promoting the human potential of host communities. Please consider inviting your school, parish, religious community or organization to join the Jesuit shareholder advocacy effort through prayer and action. Visit www.njcir.org to learn more about the Jesuit commitment to socially responsible investing. You may contact your provincial representative on the National Jesuit Committee on Investment Responsibility for recommendations for proxy voting according to the Interfaith Center on Corporate Responsibility.

Prayer

Gracious God,
You gifted the earth with bountiful gifts –
gifts you intended to be shared equitably among all your peoples.
You crowned the splendor of creation with the gift of human life,
endowing each person with a measure of your own divine dignity.
Bless the efforts of those who work to insure that all share fairly in
your wondrous gifts.
Bless the efforts of those who work to insure that the dignity of all
your beloved children is protected and revered.
Move the hearts of those with power – corporate and civic leaders – to understand their responsibility to effect just policies and to be wise
stewards of your gifts.
May all persons of faith be tireless advocates for those who lack a voice in our world and may we all work
unceasingly for the dawning of that justice without which there cannot be true and lasting peace.

Amen.

National Jesuit Committee on Investment Responsibility (NJCIR)

Mr. Mark Potter (California Province)
Rev. Richard L. Millbourn, S.J. (Chicago Province)
Ms. Carrie Monnette (Detroit Province)
Rev. Michael Linden, S.J. (New England Province)
Mr. Sean Agniel (Missouri Province)
Ms. Mary Baudouin (New Orleáns Province)
Rev. Mark Hallinan, S.J. (New York and Maryland Provinces)
Mr. William Lockyear (Oregon Province)
Mr. John Sealey (Wisconsin Province)
Rev. Winston Rye, S.J. (Jesuits in English Canada)
Ms. Anna Bradley (Jesuit Conference Consultant for Socially Responsible Investing)
Mr. John Kleiderer (Jesuit Conference Liason)

Downloads

Prayer Request (PDF)

Shareholder Resolution (PDF)