Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Exxon investors to prod revamped board on net zero carbon study

Published 06/22/2021, 05:06 PM
Updated 06/22/2021, 05:11 PM
© Reuters. FILE PHOTO: A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes/File Photo

By Jennifer Hiller

HOUSTON (Reuters) - Investors calling for Exxon Mobil Corp (NYSE:XOM) to study the impact of getting its oil and gas business to net-zero emissions by 2050 will push for talks later this year with what they hope is a more sympathetic board.

Exxon shareholders voted 49.4% in favor of the study, a regulatory filing showed on Monday. Companies typically respond to proposals that get majority support from investors.

"We were validated," said John Geissinger, chief investment officer at Christian Brothers Investment Services (CBIS), which wants Exxon to quantify the financial impact of a net-zero strategy. "A significant number of shareholders believe that assessing the risks to the company under different climate scenarios is critically important."

Geissinger expects to hold talks with Exxon this fall on the proposal, and hopes to collaborate on the outlines of the report.

The CBIS proposal won support of big investors BlackRock (NYSE:BLK) and State Street (NYSE:STT) Global Advisors, which combined hold more than 12% of Exxon shares.

"We want to have some transparency to the risks that the company faces," Geissinger said. The requested report would examine the impact on Exxon of a world moving to net-zero carbon emissions by 2050.

Exxon recommended shareholders vote against the proposal, citing the range of scenarios within its planning. But a quarter of its board lost their seats to nominees of a hedge fund prodding Exxon to cut spending on fossil fuels and address a world moving to lower-carbon fuels.

© Reuters. FILE PHOTO: A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes/File Photo

"We value the input and feedback we receive from our investors, and we will continue to engage with our shareholders as we move forward," Exxon spokesman Casey Norton said.

Exxon has pledged to limit the pace of growth of carbon emissions that contribute to climate change, but has not agreed to net zero emissions by 2050 as rivals BP (NYSE:BP) Plc, Royal Dutch Shell (LON:RDSa) and TotalEnergies have done.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.