An international group of investors, including the £6.7bn Church Commissioners for England, is pushing ExxonMobil for greater transparency over its carbon emissions policy following the Paris Agreement on climate change late last year.
The group, which owns more than $1bn (£700m) in Exxon shares and represents nearly $300bn in assets under management, wants the multi-national oil and gas company to disclose its resilience to a future with lower carbon emissions after world leaders committed to holding the rise in global temperatures well below two degrees Celsius and restrict warming to 1.5 degrees at December’s Paris UN Climate Conference.
The shareholder proposal is led by New York State Controller Thomas DiNapoli and is being backed by the Vermont State Employees’ Retirement System, the University of California Retirement Plan, the Brainerd Foundation as well as Church Commissioners for England.
It calls on ExxonMobil to publish an assessment of how its portfolio would be affected by a 2-degree target through, and beyond, 2040.
More specifically, it said the assessment should include an analysis of the impacts of a 2-degree scenario on the company’s oil and gas reserves and resources assuming a reduction in demand resulting from carbon restrictions.
DiNapoli, who is trustee of the New York State Common Retirement Fund, said: “The unprecedented Paris agreement to rein in global warming may significantly affect Exxon’s operations. As shareholders, we want to know that Exxon is doing what is needed to prepare for a future with lower carbon emissions. The future success of the company, and its investors, requires Exxon to assess how it will perform as the world changes.”
Church Commissioners for England head of responsible investment Edward Mason (pictured) said: “Climate change presents major challenges to corporate governance, sustainability and ultimately profitability at ExxonMobil. As responsible investors we are committed to supporting the transition to a low carbon economy. We need more transparency and reporting from ExxonMobil to be able to assess how they are responding to the risks and opportunities presented by the low carbon transition.”
The group said Exxon’s peers, Shell and BP, had already agreed to disclose how they will be affected by efforts to lower greenhouse gas emissions in response to similar shareholder proposals co-filed in 2015 by the Church of England and other investors.
More recently, 10 global oil and gas companies, including Shell and BP, announced their support for lowering GHG emissions to help meet the 2-degree goal.
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