Mobil Exxon shareholders press for greater transparency on climate change

Exxon Mobil is dealing with increased demand for disclosure of the risks of climate change to its bottom line. The company claims that demand for oil will increase over 13 percent by 2040 in the face of other reports that demand will fall by 22 percent by then given action necessary to keep global warming from creating worldwide catastrophe.  (The New York Times, May 23, 2016, by Clifford Krauss and John Schwartz)

Exxon Mobil is opposed to a shareholder proposal up for vote this week. “The [Exxon Mobil] board is confident that the company’s robust planning and investment processes adequately contemplate and address climate change related risks,” wrote Exxon in a letter advising urging shareholders to vote against the proposal. But a major shareholder, Norway’s sovereign wealthy fund, support the proposal, “We encourage companies to outline their position on specific climate change regulation relevant to their business profitability and outlook.” (International Business News, May 24, 2016, by Owen Davis)

Another major shareholder, CalPERS, the California Public Employees’ Retirement System has taken a leadership role in demanding more transparency. “The world is a different place, and you can’t manage what you can’t measure,” said a CalPERS director. (Los Angeles Times, April 13, 2016, by Asaf Shalev)