climate changewe proactively consider climate change in our business decisions
providing strong governance
Chevron’s governance structure includes multiple avenues for the Board of Directors and executive leadership to exercise their oversight responsibilities with respect to climate change risks, including through our Public Policy, Strategy and Planning, and Global Issues committees, each of which meets regularly throughout the year. We periodically reassess our governance structure to ensure that Chevron maintains a Board composition and framework that is effective for managing the company’s performance and risks to our business as we strive to deliver value to our stockholders.
and managing risk
Chevron faces a broad array of risks, including market, operational, strategic, legal, regulatory, political and financial risks. We undertake an enterprise-wide process to identify major risks to the company and ensure that appropriate mitigation plans are in place. As part of this process, we conduct an annual risk review with executive leadership and the Board of Directors.
setting business strategy
Chevron’s strategic and business planning processes bring together the company’s views on energy market conditions to guide decision making by executive leadership and facilitate discussion with the Board of Directors. The energy demands of the world are greater today than at any other time in human history. Most energy experts agree oil and gas will account for about half of global energy consumption for at least the next two decades under almost any market scenario, even when government policy increasingly aims to cut GHG emissions. Due to declining production from existing sources, the world will need substantial investment in oil and gas projects to meet demand for affordable, reliable and ever-cleaner energy. As part of our strategic planning process, we use our proprietary models to forecast demand, energy mix, supply, commodity pricing and carbon prices – all of which include assumptions about future policy developments, such as those that may be implemented in support of the Paris Agreement.
Our Policy Principles for Addressing Climate Change guide our actions.
We take prudent, practical and cost-effective actions to address potential climate change risks as part of our commitment to running our business the right way and to unlocking the potential for progress and prosperity everywhere we work.