Page 14 - EurOil Week 22

NorthAmOil PERFORMANCE NorthAmOil

Chevron to cut workforce as

ExxonMobil resists layoffs

US CHEVRON said on May 27 that it would cut its ExxonMobil and Chevron came under fire
global workforce of around 45,000 by 10-15% from environmental groups as a result of the
in response to the oil industry downturn. The resolutions being rejected.
announcement, made the same day as Chevron “Exxon and Chevron continue to give lip ser-
held its annual shareholder meeting, comes after vice to the goals of the Paris Agreement, while
the super-major previously announced that it failing to clarify for investors if or how they will
was reducing its capital expenditure budget for reduce their emissions in alignment with the
2020 by around 30% and making some volun- Paris Agreement,” said environmental advocacy
tary job cuts. group As You Sow’s president, Danielle Fugere.
The job cuts announced last week represent As You Sow had filed the resolution pertaining to
4,500-6,750 people and will vary by region, risks to petrochemical facilities. The two
according to comments from a Chevron spokes- However, one of Chevron’s sharehold-
person, Veronica Flores-Paniagua, that were er-backed resolutions – a call to charter a climate companies’
cited by Reuters. Most of the cuts are due to be change risk committee to evaluate company
made this year. strategy – did pass, by 53%. annual meetings
Meanwhile, rival US-based super-major Woods told shareholders that he understood
ExxonMobil said at its own annual shareholder concerns about the environment and corporate also saw both
meeting, also held on May 27, that it had not yet transparency, adding that ExxonMobil had held vote against
taken steps to reduce its workforce. numerous meetings with climate-focused inves-
“Today, we have no layoff plans,” ExxonMo- tors. He argued, however, that meeting the goals nearly all
bil’s CEO, Darren Woods, said. set out by the Paris Agreement would require
ExxonMobil has also cut its capex budget for a substantial change to government policy and shareholder-
this year by around 30%, and is also reducing its consumer preferences.
operating expenses by roughly 15%. “We recognise the importance of addressing backed
The two companies’ annual meetings also climate change,” Woods said. “As an independ- resolutions.
saw both vote against nearly all sharehold- ent company, we can’t drive that, but we can
er-backed resolutions, including moves to set contribute.”
carbon emission reduction targets and disclose ExxonMobil shareholders also rejected a
climate change risks to petrochemical facilities. proposal to split the chairman and CEO role
The latter resolution has recently been adopted into two. The proposal had been promoted
by shareholders of Phillips 66, which operates by some in response to a decision to strike
a joint venture company in partnership with an unrelated climate change resolution from
Chevron. the ballot.™

P14 www. NEWSBASE .com Week 22 04•June•2020