Chevron has no plans to shrink its oil and gas in favor for renewables; unlike many of its peers; Chief Financial Officer of the company, Pierre Breber said on Thursday, in the midst of mounting pressure from investors and stakeholders for a more environmentally approached business.
Firstly, as we have reported previously, oil and gas companies, especially major ones, are facing huge pressure from investors, stakeholders and also from the public opinion; they argue that oil and gas companies, a sector that is historically one of the most pollutants of the industry, has to change its business model.
Secondly, in the particular case of Chevron, its stakeholders voted in late-May in favor of a non-binding resolution calling on the firm to cut emissions generated by the use of its products. That same day, May 26, A judge in The Hague ruled against Shell, urging it to cut GHG emissions faster that its original plan.
Thirdly, ExxonMobil also lost three board sits to an activist fund, which was advocate for a environmentally oriented business model. It was indeed a historic day for the oil and gas industry.
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Chevron explores hydrogen with Toyota
Moreover, Shell recently stated that it pretended to appeal the resolution from The Hague; however, it would also accelerate its emission cutting strategies. Environmental groups urged the company not to appeal and focus instead on ways to accelerate the emissions cuts.
In addition, Chevron agreed to invest around $3 billion into lowering emissions between this year and 2028; nevertheless, the figure is expected to grow, CFO Breber said; at the Reuters Events Global Energy Transition conference.
Furthermore, $2 billion of those will go to address lowering carbon emissions in its own operations; while another $750 million will be allocated for renewable fuels, such as renewable natural gas, he added.
Finally, this is not the first effort of Chevron environmentally wise; back in April, the company announced an agreement with Toyota, to search for cleaner solutions in the transportation industry. This being hydrogen developments.