15 Sept 2021
Chevron Reveals Plans for Low Carbon Investment amid Activist Investor Pressure
The Index Today
Chevron Corporation has announced upcoming plans to move towards lower carbon businesses and triple its capital investments to $10 billion by 2028. The business aims to set new lower carbon businesses focused on renewable energy sources such as hydrogen production and natural gas.
CEO Michael Wirth told reporters, “Chevron intends to be a leader in advancing a lower carbon future. Our planned actions target sectors of the economy that are harder to abate and leverage our capabilities, assets, and customer relationships.”
According to Wall Street Journal Report last week, Chevron held a meeting with executives from Engine No. 1. This hedge fund was able to win seats at the Exxon Mobil Corporation through a proxy battle this year.
The company’s shares rose 0.2% higher on Tuesday and changed hands at $98.16 each. This move will bring down the corporation’s stock to 10.8%. Shareholders are fully supportive of the company’s decision to aim for lower carbon emission targets which have been elaborated in the “scope 3” transition plans.
Chevron released its three month earnings report for June which shares stated at $1.60 for revenues of $37.6 billion for the second quarter. West Texas Intermediate crude prices traded at a 300% higher range during the pandemic, helping Chevron increase its production to 145,000 barrels last year.