ExxonMobil Climate Risk Report 2013
|Company||Exxon Mobil Corporation|
|Filer||The Christopher Reynolds Foundation|
|Sector||Oil and Gas|
|Subject(s)||Climate Change; Greenhouse Gas Emissions|
|Resolved Clause Summary||Climate risk report including financial impacts from extreme weather|
WHEREAS, ExxonMobil’s 2012 Energy Outlook projects increases in global energy demand by 30% by 2040 compared to 2010, including continuing increases in carbon dioxide (CO2) emissions until 2030. The same Report also outlines the Company’s commitment to continue until 2040 its present business model focusing almost exclusively on the production and marketing of fossil fuels. However, the Report does not describe how ExxonMobil will address the multiple physical and societal risks we face from a changing climate.
However, the risks noted below associated with such dependency on fossil fuels are increasingly evident:
The OECD’s report “Environmental Outlook to 2050: The Consequences of Inaction” states that: “without more ambitious policies, the Baseline projects that atmospheric concentrations of GHGs would reach almost 685 parts per million (ppm) CO2-equivalents by 2050. This is well above the concentration level of 450 ppm required to have at least a 50% chance of stabilizing the climate at a 2-degree Celsius global average temperature increase.”
The 2012 Special Report of the International Panel on Climate Change “Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation” states: “The character and severity of impacts from climate extremes depend not only on the extremes themselves but also on exposure and vulnerability. …Disaster risk management and adaptation to climate change focus on reducing exposure and vulnerability and increasing resilience to the potential adverse impacts of climate extremes, even though risks cannot fully be eliminated.”
Similar data from the International Energy Agency and Massachusetts Institute of Technology also warn of significant consequences stemming from continued fossil fuel burning. Similarly, before Hurricane Sandy, the world’s largest reinsurance company, Munich Re, linked severe weather to human-caused climate change.
After Superstorm Sandy, a Bloomberg Businessweek cover featured a flooded city street under a banner headline declaring: “It’s Global Warming, Stupid.” It declared: “To limit the costs of climate-related disasters, both politicians and the public need to accept how much they’re helping to cause them” (November 5-11, 2012).
While acknowledging global warming and fossil fuel’s contribution to climate change, CEO Rex Tillerson stated (06.27.12): “We have spent our entire existence adapting. We’ll adapt.” He argued: “it’s an engineering problem and there will be an engineering solution.” As a country we do not have “engineering solutions” at hand for the climate change crisis the nation already faces; yet the urgency to act is now.
RESOLVED: ExxonMobil shareholders request that a committee of independent members of the Board of Directors review the exposure and vulnerability of our company’s facilities and operations to climate risk and issue a report to shareholders (at reasonable cost and omitting proprietary information) that reviews and estimates the costs of the disaster risk management and adaptation steps the company is taking, and plans to take, to reduce exposure and vulnerability to climate change and to increase resilience to the potential adverse impacts of climate extremes.