Shareholders Challenge ChevronTexaco: Damage to Amazon is Bad for Business

Shareholders Challenge ChevronTexaco: Damage to Amazon is Bad for Business

4/26/2005 2:51:00 PM

To: National Desk, Energy Reporter

Contact: Devon Haynie of Amnesty International USA, 202-544-0200 ext. 232

SAN FRANCISCO, April 26 /U.S. Newswire/ -- On the eve of ChevronTexaco's annual shareholder meeting in San Ramon, California state pension funds, social investment firms, and environmental and human rights organizations jointly voiced strong concerns regarding ChevronTexaco's activities in sensitive areas like the Ecuadorian Amazon jungle.

Tomorrow, Humberto Piaguaje, a Secoya indigenous leader from the Ecuadorian Amazon, will confront ChevronTexaco's CEO David O'Reilly and other large shareholders to convey how the company's operations have affected his now dwindling and cancer-ridden community.

A shareholder proposal will also call upon ChevronTexaco to prepare a report on "new initiatives by management to address the specific health and environmental concerns of communities affected by unremediated waste and other sources of oil-related contamination in the area where Texaco operated in Ecuador." The proponents are Trillium Asset Management, the New York State Common Retirement Fund, Amnesty International and the Sisters of Mercy of Burlingame (California), who together hold 20 million shares worth over $1 billion.

Shelley Alpern, representing Trillium Asset Management, said, "Three decades ago, ChevronTexaco began drilling in fragile indigenous lands, spilling 18.5 billion gallons of toxic wastewaters into the rainforest and spilling millions of gallons of oil. ChevronTexaco's handling of this situation warrants far greater scrutiny by shareholders and by the Securities and Exchange Commission, which should be investigating why this lawsuit has not been mentioned in any of the company's SEC filings."

California State Controller Steve Westly stated: "I am concerned that ChevronTexaco's decision to engage in a lengthy legal battle over Texaco's past behavior may cause damage to the company's reputation and further erode shareowner value."

New York State Comptroller Alan Hevesi stated: "I find it troubling that ChevronTexaco's reputation continues to suffer because it has not been able to resolve its issues in Ecuador. Each day that this environmental and health crisis continues, ChevronTexaco's future business opportunities abroad are more at risk. As an institutional investor, I hope that the company will resolve its issues in Ecuador as soon as possible."

Gabriela Jaramillo of Amnesty International stated: "As stated in the Universal Declaration of Human Rights, every organ of society has a responsibility to promote respect for human rights, including multinational corporations. The claims of the Ecuadorian Amazon communities deserve to be addressed, and the company needs to demonstrate with actions that they are serious about being a socially responsible leader in their industry."

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