ExxonMobil agrees with shareholders to disclose climate risks - joins First Energy, Peabody & others
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Author: Mike Scott, Forbes.com (USA)
ExxonMobil...has agreed to tell investors of the risks to its business from climate change after pressure from investors...Arjuna Capital and...As You Sow... ExxonMobil says it will assess the risks to its resources, how its profits will be affected by tighter emissions limits and how any new reserves...will add value to the company. “The report will provide investors with greater transparency into how ExxonMobil plans for a future where market forces and climate regulation makes at least some portion of its carbon reserves unburnable,” said Arjuna and As You Sow...Exxon’s move mirrors [similar moves by]...FirstEnergy...and...Peabody Energy... [In late 2013] Ceres, representing investors with $3 trillion of assets..., wrote to 45 of the biggest fossil fuel companies asking them to set out their climate risks. About two thirds agreed...and the group’s members filed shareholder resolutions with the others. [also refers to Shell]
Author: Natasha Lamb, director of equity research & shareholder engagement of Arjuna Capital, & Danielle Fugere, president & chief counsel of As You Sow, in Guardian Sustainable Business
There is a big shift afoot in energy markets and it is not just funds flowing out of fossil fuel stocks courtesy of Bill McKibben and his climate movement 350.org. While many investors across the globe say no to Big Oil through divestment, others are looking to change the energy giants from the inside...In a turnabout from Exxon's long-standing reputation as a climate sceptic, Exxon is the first energy company to respond to investor concerns and, in exchange for withdrawal of the proposal, commit to publish a report on how it assesses carbon asset risk. Exxon's commitment did not come overnight and is the result of months of dialogue and legal process...We hope Exxon's report will serve as a template for the industry so investors can make assessments with consistent data that can be compared from company to company...Investors are the canary in the coalmine and will move their money to avoid material risk.
Author: Diane Cardwell, New York Times
Energy companies have been under increasing pressure from shareholder activists in recent years to warn investors of the risks that stricter limits on carbon emissions would place on their business. On Thursday, a shareholder group said that...ExxonMobil became the first oil and gas producer to agree to publish that information... The Ceres campaign began last fall with a letter from shareholders representing $3 trillion in assets to 45 of the largest fossil fuel companies asking for more information about whether and how they were addressing the risks posed to their assets by changing climate policy. Two-thirds of the companies agreed to respond...After that, shareholders filed proposals at almost a dozen companies,...including Hess, Kinder Morgan and Chevron. [Also refers to steps to disclose climate risk by FirstEnergy, Peabody Energy]
Author: As You Sow
ExxonMobil...has agreed...to publish a Carbon Asset Risk report describing how it assesses the risk of stranded assets from climate change. The agreement comes in response to a shareholder resolution filed by As You Sow and Arjuna Capital, which has been withdrawn...As You Sow has filed similar resolutions with Chevron, Anadarko, Hess, and CONSOL Energy...Exxon's report will address:
- How Exxon assesses the risk of a low carbon scenario, other than placing a price on carbon.
- Why the Company, in assessing the economic viability of proved...reserves, fails to conduce a scenario analysis based on...reducing GHG emissions 80% by 2050...
- How Exxon's base case scenario tracks with the IPCC...
- How the Company incorporates a low carbon assessment into capital allocation plans...
- Why the Company believes current investments in new reserves are not particularly exposed to the risk of stranded assets.