The ever-soaring price of gas may have Chevron’s stock riding high, but the company is still facing a massive liability in Ecuador. An independent report released widely today reveals that, despite Chevron’s claims to the contrary, the $18 billion court judgment against the oil giant in Ecuador poses serious financial and operational risks to the company. The report also raises serious concerns about Chevron management’s handling of the long-running Ecuador liability, as well as fundamental board oversight issues.

After nearly two decades of litigation, on February 14, 2011, the Ecuadorian Provincial Court issued its final judgment in which it found Chevron liable for just over $18 billion in compensatory and punitive damages. This constitutes one of the largest court judgments for environmental damage in history, second only to the $20 billion Gulf Cost Claims Facility that BP was forced to set up in the wake of the Deepwater Horizon disaster.

Simon Billenness of Strategy for Corporate Responsibility and Social Investment, a co-author of the report, said:

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As Canadians were casting their votes in the Federal Election, another important decision was playing out in the board rooms of Canada’s top banks: what to do with Enbridge, sponsor of the Northern Gateway Pipeline.

Over the last several weeks, RAN  teamed up with First Nations of the Yinka Dene Alliance to put senior banking executives on notice as they gathered for this season’s round of annual shareholder meetings. The message? First Nations are rights-holders, not stakeholders.

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