Industryweek 10659 Sec 1
Industryweek 10659 Sec 1
Industryweek 10659 Sec 1
Industryweek 10659 Sec 1
Industryweek 10659 Sec 1

ExxonMobil, Chevron Must Allow Investor Climate Votes

March 25, 2016
The two oil giants had sought to persuade regulators to allow them to drop the resolutions, which are backed by environmentalists and employee retirement programs in California and New York.

U.S. regulators have told ExxonMobil (IW 500/1) and Chevron (IW 500/2) to permit shareholders to vote on resolutions requiring assessments of how climate change policies might affect them, according to documents released on March 24.

The two oil giants had sought to persuade regulators to allow them to drop the resolutions, which are backed by environmentalists and employee retirement programs in California and New York.

The resolutions demand an "annual assessment of long term portfolio impacts of public climate change policies," including estimating the value of the companies' assets under global climate policies that could depress demand for oil and gas.

The U.S. Securities and Exchange Commission ruled against the two oil giants, telling ExxonMobil in a March 22 letter that it disagreed with the company's view "that the proposal is so inherently vague or indefinite" that shareholders would be incapable of assessing it.

The SEC decision sets the stage for a shareholder vote on the resolution later this spring. The majority of ExxonMobil shareholders have previously sided with the company in prior climate resolutions.

"Based on the information you have presented, it does not appear that ExxonMobil's public disclosures compare favorably with the guidelines of the proposal," the SEC said. "Accordingly, we do not believe that ExxonMobil may omit the proposal."

The SEC issued a similar letter to Chevron.

New York State Comptroller Thomas DiNapoli, a trustee of the New York State Common Retirement Fund, applauded the SEC decision as "a major victory for investors who are working to address the risks that global warming presents to our portfolios."

"Investors need to know if ExxonMobil is taking necessary steps to prepare for a lower carbon future, particularly now in the wake of the Paris agreement," DiNapoli said.

The SEC also refused to let ExxonMobil and Chevron delete a second climate resolution requiring them to boost capital distributions due to risk to the company's business from "stranded assets" that cannot be developed because of strict emissions limits.

An ExxonMobil spokesman said it will provide the board's position on the resolutions next month.

Copyright Agence France-Presse, 2016

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!