Tuesday 18 April 2023

ExxonMobil shareholders demand climate transparency

Legal & General Investment Management (LGIM) and Christian Brothers Investment Services (CBIS) have brought forward a joint shareholder resolution, calling on ExxonMobil to be more transparent with its climate aims.

The file calls for detailed documentation of how the oil giant’s net zero targets will be met and the impacts they will have on the environment and its assets.

There are fears that as the energy transition quickens, more of the firm’s oil and gas projects could be decommissioned, which would financially impact shareholders.

This comes after shareholders asked for a full disclosure last year on which assets might be retired in the future – but this has not yet been acted on, they say.

Michael Marks from LGIM explained: “We believe such level of disclosure is imperative for investors to better evaluate long-term risks and economic viability of the business in a carbon constrained future.”

“The company's disclosures still give investors little insight into how retirement costs might accelerate and how large they might be,” CBIS’ John W. Geissinger added.

ExxonMobil responded: "We respect that our shareholders may have viewpoints and perspectives that differ from management and the Board and we always consider their feedback."