Page 28 - Respond 2018 Magazine

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Exxon shareholders win

‘historic’ climate vote

against board’s advice

By Megan Darby

Shareholders in world’s largest private oil company won a victory that signals deep
unease about climate change amongst major investors

The world’s largest private oil company is being forced goals. But management opposed shareholder demands for
to reckon with the clash between its business model and more transparency, insisting none of Exxon’s reserves would
international climate goals, after a “historic” showdown with be “stranded” in the global shift to clean energy.
investors.
Woods promised to “step back and reflect” after the result
At ExxonMobil’s AGM in Dallas, Texas Wednesday 31 May, was announced.
62% of shareholders voted in favour of a climate change
resolution, against the board’s advice, according to a The Church of England and New York State public pension
preliminary count. While detailed data is not yet available, fund, which led the shareholder rebellion, described
the convincing majority suggests some major funds joined Wednesday’s victory as “historic” and “unprecedented”.
sustainable investment activists after the same proposal
won 38% of the vote last year. Edward Mason, head of responsible investment for
Church Commissioners, said in a statement: “Despite
Coming amid reports president Donald Trump plans to strong opposition from the Board, the majority of Exxon’s
withdraw the US from the Paris climate deal, it signalled shareholders have sent an unequivocal signal to the
that concern about climate change is stronger than ever in company that it must do much more to disclose the impact
financial circles. on its business of measures to combat climate change.”

“Investors voting against management at Exxon is a powerful “Climate change is one of the greatest long-term risks we
rebuke to the climate denialist policies of this White House,” face in our portfolio and has direct impact on the core
said Raj Thamotheram, head of thinktank Preventable business of ExxonMobil,” added New York State comptroller
Surprises. “Markets are moving and corporate America would Thomas DiNapoli. “The burden is now on Exxon Mobil to
be foolish to bet so much on the protection from this regime.” respond swiftly and demonstrate that it takes shareholder
concerns about climate risk seriously.”
The resolution requires Exxon to disclose how the
international goal to hold global warming below 2C – as It piles the pressure on Exxon at the same time as it faces
agreed in Paris – could dampen future demand for its oil multiple lawsuits over allegations it deliberately cast doubt
and gas. on the scientific consensus around climate change, even as
its internal research confirmed it.
Thinktank Carbon Tracker estimated in 2015 that Exxon
was planning to sink $72 billion over the next decade into Grassroots campaign network 350.org has consistently
developing fuel reserves that would be surplus to the argued that engaging with Exxon is futile and shareholders
requirements of a 2C world. should take their money elsewhere.

Despite Trump’s apparent refusal to honour the Paris “Exxon’s climate lies are finally catching up with them,”
Agreement, advances in clean technology and policy action said Jamie Henn, strategic communications director at 350,
elsewhere have convinced some other oil majors to start ahead of the vote.
adjusting their expectations.
“Any real climate risk assessment will show that Exxon’s
During the AGM, Exxon chief executive Darren Woods drill-baby-drill business plan is incompatible with a liveable
reiterated his company’s support for the Paris Agreement planet.”
and call for a revenue-neutral carbon tax to meet climate