Exxon's Shareholders Just Forced the Oil Giant's Hand on Climate Change

[babylonsister]

http://www.motherjones.com/environment/2017/05/exxons-investors-climate-change-reporting


Exxon's Shareholders Just Forced the Oil Giant's Hand on Climate Change
Investors staged an unprecedented fight against the board on Wednesday.

Inae Oh
May 31, 2017 2:07 PM



In a landmark victory in the fight against climate change by corporations, Exxon Mobil shareholders on Wednesday voted to approve a plan that could force the oil company to release more information concerning its efforts to combat global warming.

The 62.3-to-37.7 landmark vote, which took place at Exxon's annual meeting in Dallas, comes amid mounting investor pressure for management to be more accountable when working to prevent worldwide temperatures from rising 2 degrees Celsius—a goal stipulated in the Paris climate accord. The energy giant has been notoriously resistant to such calls, with some board members claiming the company already produces enough reporting on the issue.

Last year, when the same measure was called to a vote, only 38.1 percent of shareholders supported it. In the interim, several new lawsuits against Exxon, including ones from the attorney generals in New York and Massachusetts, have been launched, accusing the world's largest oil company of knowingly misleading the public about the effects of global warming for decades. In a twist, Exxon and its former head, Secretary of State Rex Tillerson, are among those urging the Trump administration to remain in the accord.

The unprecedented resolution on Wednesday was announced just hours after multiple news outlets reported President Donald Trump intends to withdraw from the historic Paris climate agreement, although the president himself remained coy on Twitter about his final decision.

New York State Comptroller Thomas DiNapoli recently told CNN that Exxon's defense of the Paris accord amounted to "empty words unless the company backs them up with action." On Wednesday, DiNapoli applauded the shareholder vote as an "unprecedented victory," noting the onus was now on Exxon to meet the demands of its investors and take climate change "seriously."

[malaise]

1. Oh yes

This is huge - off to the greatest page for thee

[Ohioblue22]

2. Wow

[smirkymonkey]

3. K&R

[spanone]

4. K&R...

[gratuitous]

5. Shareholders need to know if their investment is sound

Why isn't Exxon's board out in front of this? Or don't they care about shareholders getting a good return on investment? For the last 40 years or so, many corporations have gone from being responsible citizens in our country to being focused solely on shareholder value, and using that as an excuse to become irresponsible citizens, caring for neither society nor their contribution to it. Well, here's an issue of responsible corporate citizenship and shareholder value, and Exxon's board is dodging even that obligation.

[modrepub]

7. Not a Trivial Point

I've seen analyses showing Exxon has not been able to replace its reserves, so in the long run the company can not maintain its production. It's also critical to know how much of the company's reserves are recoverable at different market prices. If most of the company's reserves cost more to extract than what's dictated by the market then the company is sitting on stranded assets and their bonds are worthless.

[Wounded Bear]

12. This is why they want in on the Russian Arctic oil...

[CaliforniaPeggy]

6. Wow! Good for those shareholders. It's about time.

[mythology]

8. Given that shareholder resolutions are non-binding

and Exxon's board is vehemently against this, my guess is the resolution will be filed in the recycling bin.

[bresue]

9. Awesome!! Thank you for sharing!

[Sugar Smack]

10. WOW.

[hatrack]

11. 29 years since the signal went up . . .

And after a human generation, ExxonMobil has to add a couple of pages to their annual reports, and maybe hire a couple of risk managers.

They'll continue to drill, pump, refine, ship and sell lots and lots of oil and gas, corrupting governments and destroying nations as they do so.

We'll never see less than 400 ppm in our collective lifetimes.

So, sorry, what was the victory celebration about again?

[BadgerMom]

13. K & R

[Duppers]

14. Double WOW!!

[central scrutinizer]

15. Resistance is NOT futile

[hatrack]

16. Oh, and in case you were wondering - it's a non-binding resolution - they'll "reconsider" it

EDIT

A few days in advance of today’s vote, Exxon tried to turn the tide of opinion among investors. According to CNBC, “Exxon had stepped up efforts to persuade investors to vote against climate-related proposals at Wednesday’s annual meeting with a campaign of calling, writing, and lobbying shareholders in person.”

Exxon has insisted that it already provides the relevant information to investors.

The investor resolution is non-binding. In an e-mail to Ars, Exxon media relations manager Alan T. Jeffers noted that the company’s chairman, Darren Woods, said the company would “consider all feedback from our shareholders.”

“Those votes receiving a majority level of support will be reconsidered by the board,” Jeffers added.

EDIT

https://arstechnica.com/business/2017/05/exxon-investors-clash-with-executives-vote-in-favor-of-annual-climate-report/

[BigmanPigman]

17. Thanks for posting! I was trying to figure this out.

I didn't understand why big oil would do such a strange thing. I hope that the shareholders stick to it. Is there a way THEY can be held accountable to stick with this decision?