Resolved:

HIV Reporting

2004 – Chevron Texaco Corp.

Resolved:

Shareholders request that our Board review the economic effects of the HIV/AIDS, tuberculosis and malaria pandemics on the company's business strategies, and its initiatives to date, and report to shareholders within (6) months following the next annual meeting. This report, developed at reasonable costs and omitting proprietary information, will identify the impacts of these pandemics on the company.

Supporting Statement:

We believe that HIV/AIDS, tuberculosis (TB) and malaria pose major risks to the long-term financial health of companies, like ChevronTexaco that operate in developing countries. A 1999 Harvard study found that countries with severe malaria grew 1.3% less per person per year (Malaria, Climate & Poverty) and, according to the World Economic Forum, "[in] the most heavily affected countries, TB decreases GDP by 4-7%"(Global Health Initiative Resource Paper, February 2002)

In addition, a new report from the World Bank says "a complete economic collapse will occur" unless there is a response to the HIV/AIDS pandemic. It estimates that the HIV/AIDS crisis in Africa, where our company has operations in over 50 countries and employees more than 15,000 workers, is likely to cause growth in GDP to decline at a much higher rate than the existing estimates of .3% to 1.5%. (Long-Run Economic Costs of AIDS, June 2003) According to the Brookings Institute, when "overall income growth decline[s]" the "future growth prospects" of firms operating in these countries also diminishes."

Even more significantly, in our opinion, these diseases can directly impact our company's bottom line through decreased productivity, increased absenteeism, ballooning healthcare and disability costs, and the destruction of human capital. Steve Simpson, ChevronTexaco's Regional Medical Director for Africa has acknowledged that "[t]he success of our company is inextricably linked to the health and productivity of our employees." And the Metropolitan AIDS Research Unit, which represents one of the largest insurance companies in South Africa, "has repeatedly warned that without active intervention, AIDS will cause the average cost of employee benefits [in South Africa] to double by 2005 and treble by 2010, adding 15 percent to the average wage bill"(Shifting the Burden of HIV/AIDS, Boston University School of Public Health, May 2002) We feel that this estimate should be of particular concern to shareholders of ChevronTexaco, which has extensive operations in South Africa.

We believe that the huge economic impact of HIV/AIDS, TB and malaria makes it imperative for the boards of directors to carefully evaluate and report to shareholders on the effects of these diseases on their companies. In our opinion, shareholders must fully understand the threats posed to our company by these diseases in order to make informed decisions about its value.