Church of England wins first battle against ExxonMobil on climate change

[Anglican Communion News Service] Shareholders in ExxonMobil will be allowed to vote on a climate change resolution brought by the Church of England and other significant institutional investors, after the U.S. Securities and Exchange Commission (SEC) blocked an attempt by the oil giant to leave the motion off the agenda of May’s annual meeting of shareholders.

The consortium wants the company to “disclose the resilience of its business model in the wake of the Paris Agreement on climate change.” It prepared a motion for the company’s annual shareholders meeting which, if passed, would force the oil company to be more transparent on its efforts to shift to a low-carbon economy.

Similar motions prepared by the Church Commissioners and other church investors were supported by Shell and BP last year. But ExxonMobil took a different line and sought permission from the SEC to exclude the motion from the agenda for May’s annual meeting.

The Church Commissioners’ actions are part on an increasingly hands-on approach to engagement with the companies it invests in. The ExxonMobil resolution was presented by a consortium of investors which, in addition to the Church Commissioners, includes the New York State Common Retirement Fund, the Vermont State Employees’ Retirement System, the University of California Retirement Plan and The Brainerd Foundation. Together, the group represents nearly US$300 billion (approximately £211 Billion GBP) of assets – US$1 billion (approximately £703 million GBP) of them in ExxonMobil shares.

ExxonMobil challenged the motion on the basis that the wording was too vague and that it already provided information about energy and carbon for its shareholders. But SEC lawyer Justin Kisner has rejected the company’s appeal, saying: “We are unable to conclude that the proposal is so inherently vague or indefinite that neither the shareholders voting on the proposal, nor the company in implementing the proposal, would be able to determine with any reasonable certainty exactly what actions or measures the proposal requires.”

He added: “It does not appear that ExxonMobil’s public disclosures compare favourably with the guidelines of the proposal.”

Responding to the decision, the Church of England’s head of responsible investment, Edward Mason, said: “We are delighted that shareholders will have the opportunity to confirm that they would like ongoing assurance from ExxonMobil that the company is positioning itself for the transition to a low carbon economy.”

And the New York state Comptroller Thomas DiNapoli, who is heading the move on behalf of the consortium, said: “This is a major victory for investors who are working to address the risks that global warming presents to our portfolios.

“The Securities and Exchange Commission’s determination upholds shareholders’ rights to ask for vital information. 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. We look forward to presenting our proposal to fellow shareholders at ExxonMobil’s annual meeting.”

The investors consortium continues to face an uphill battle to get the motion approved. The Reuters news agency reports that no climate change-related proposal has ever been approved by ExxonMobil’s shareholders; and that last year they rejected – by 79 per cent – a request that they appoint a climate expert to the company’s board.

Comments

  1. Rex Burr says:

    God hasn’t provide the means of storing intermittent energy that would be necessary for extensive dependence upon sun and wind.
    God however has provided mankind with a vast supply of easy to use energy, in the form of coal, oil and gas, to enhance life on Earth.
    Yet the Church Of England wants us to reject that provision.
    And, wonderfully, use of the energy resources provided increases the availability of plant food in the atmosphere to increase food supplies.
    We also have nuclear fission and will have nuclear fusion in the longer term.
    There is no evidence that the small increase in the concentration of carbon dioxide in the atmosphere is having any serious deleterious effect on life on earth, or ever will have.
    If there were such evidence it would be broadcast widely and we would all be convinced.
    All we have is attacks on those who do not share their naive mindset.

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