Chevron announced the launch of its new energy fund Thursday with a $ 300 million pledge toward low-carbon technology investments.
Future Energy Fund II is the eighth venture fund emerging from Chevron Technology Ventures, which seeks to invest in innovative companies that lead solutions for a time to come. cleaner future.
“We will focus on disarming some of the most difficult sectors of the economy,” Chevron Chairman and CEO Mike Wirth told CNBC’s David Faber in an interview recorded Wednesday afternoon. Profit is the main driver here, it wants to cultivate technology. “
For an oil and gas company like Chevron, it can be difficult for ESG-centric investors to look beyond their traditional power package. Wirth said, however, that as the demand for clean energy gradually grows, Chevron will continue to explore new technologies to promote environmental, social and corporate governance investment.
“This is not a clue that will happen suddenly, this will be an evolution more than a revolution,” he said in an interview for the series “Evolve: The Faber Interview”.
When it comes to leading the energy transition, Wirth said Chevron ‘s investments in battery technology are less established compared to legacy companies in wind or solar power. “We could get something at some point if that fits with our business model,” he said when asked about the potential for future mergers or acquisitions.
Acknowledging Wirth is no stranger to tackling sustainability and environmental issues, but his role as CEO in the past year has been pushed to be more visible and to make Chevron’s values clear. “I’m not sure we’ll see a return to the days when Chiefs didn’t speak out on issues,” he told Faber.
Wirth acknowledges, however, that the weight of his words when he takes a stand on an issue could mean something different in another country. Because of Chevron ‘s global reach, he stressed that context is important, but said that you can’t be afraid to hear yourself. “You have to think about the issues you choose.
Wirth discussed Chevron’s history of taking proactive steps on issues of social and racial injustice. dating back to the 1960s. It also highlighted the company’s connection to colleges and universities that were historically black after the assassination of George Floyd last year.
The company also continues to make significant strides in personal development when it comes to recognizing race issues, Wirth said. He said he has a back counselor, a black employee with whom he talks monthly about his experience inside and outside Chevron. “As I want our company to be in a certain way, it’s not always at that level,” he said. “I’ve learned little by little about things we need to do. better. “
Having that personal connection with employees is made more difficult by the pandemic of coronavirus, which has forced corporations to change the work-from-home environment.
In the case of Chevron, about a third of its staff personally work on ships, offshore drilling rigs or other locations. For the remaining corporate employees, he said, getting back to their offices is changing around the world. While not sure what the result will look like, Wirth predicts that the environment will be different from the typical five-day work week, personally.
As Chevron is working to make up for the losses it has suffered in the past year to some extent as a result of the pandemic, Wirth remains optimistic in the long run. He urged shareholders not to overlook Chevron’s efforts in clean energy as it redefines its portfolio for a more sustainable future.
“If we had apologized for the efforts of investors, we would be missing an opportunity to engage with some of the most talented and capable people on the planet,” he said. “I think it’s That would be a mistake. “