Chevron Under Fire

George  Serafeim; Rebecca   Henderson; Christine  Snively

Case | HBS Case Collection | January 2015

Chevron Under Fire

by George Serafeim, Rebecca Henderson and Christine Snively

Abstract

Oil giant, Chevron, faced numerous challenges on environmental, social and governance (ESG) grounds in the first decade of the 21st century, including some major lawsuits and actions by NGOs. The case describes those challenges and raises questions about what is the optimal response on the part of the company in order to ensure future growth and profitability, and how those challenges are going to affect the future competitiveness of not only Chevron but of the whole oil and gas sector.

Keywords: carbon tax; oil and gas; environment; drilling; Governance; Business or Company Management; Corporate Social Responsibility and Impact; Corporate Strategy; Environmental Sustainability; Energy Sources; Mining Industry; Energy Industry;

Language: English

Format: Print

18 pages

Educators

Citation:

Serafeim, George, Rebecca Henderson, and Christine Snively. "Chevron Under Fire." Harvard Business School Case 115-031, January 2015.

In 2016, Fitbit remained the world’s leading producer of activity trackers—an increasingly crowded space—with over 21 million units sold that year. Fitbit’s suite of products allowed users to track the number of steps taken, calories burned, and heart rate activity. Fitbit devices were marketed to individual consumers as well as corporate wellness programs and employers. Though Fitbit was primarily focused on wellness, should management consider evolving into a chronic disease management company?

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We develop a methodology that calculates the impact that organizations have on the environment through their water consumption relating to water stress risk. Using the methodology, we derive estimates for four companies that show how assumptions on the geographic location of the water withdrawal and use of different prices for water across geographies lead to variation in these estimates. We conclude with a framework guiding a user to understand the conditions under which a methodology might lead to over- or underestimation of water costs.

Faculty & Research

Chevron Under Fire

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