ExxonMobil GHG Reductions 2013
|Company||Exxon Mobil Corporation|
|Filer||Tri-State Coalition for Responsible Investment|
|Sector||Oil and Gas|
|Subject(s)||Air Pollution; Climate Change; Greenhouse Gas Emissions|
|Resolved Clause Summary||Adopt quantitative GHG goals for products and operations|
Increasing data reveals the negative consequences of the increase of global greenhouse gas (GHG) emissions. In 2012, 60% of the United States experienced a severe drought. The consequent increase in food prices is expected to rise as much as 4.5% next year. Superstorm Sandy wrecked devastation, including loss of life, homes, businesses, closed trading on the New York Stock Exchange, and incurred losses projected at more than $75 billion.
2011 set another record for world carbon dioxide (CO2) emissions with a 3.2 percent increase over the 2010 global estimate to 34.83 billion tons. This international increase was reflected in a net increase of 3.2 percent in ExxonMobil’s GHG emissions from operations in 2011 over 2010 .
The Carbon Disclosure Project’s “Carbon Action Initiative” is supported by investors managing $10 trillion in assets. It asks the world’s largest companies to publically disclose targets to reduce carbon emissions and to implement investments in projects to realize reductions through the established CDP annual survey. CDP reports “High emitting companies that set absolute emissions reduction targets achieved reductions double the rate of those without targets with 10% higher firm-wide profitability.”
ExxonMobil’s “2012 Outlook for Energy: A View to 2040” suggests it will make significant investments in deepwater, shale oil and fracking plays; yet all of these contribute significant GHGs emissions. None of its publicized major strategies to date are low-carbon.
Although governments, including the U.S., resist taking significant steps to reduce emissions, fearing taxpayer backlash, the data above shows that, sooner or later, restrictions on carbon emissions will be necessary. Indeed, in its 2012 Annual Energy Outlook, the International Energy Agency (IEA) states, “No more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if the world is to achieve the 2°C goal...” This has led economists to fear a “carbon bubble” as current investments may be stranded.
Low Carbon Fuel Standards and the recent EPA Fuel Efficiency Standard requiring autos to average 54.5 MPG by 2025 demand the development of a new generation of fuels that will be economically and environmentally sustainable.
While ExxonMobil investors have requested the company to set GHG reduction goals in operations and products for six years, management has failed to do so. Creating clear-cut goals will focus management on our company’s need to significantly reduce our carbon footprint by implementing a disciplined business strategy to cut emissions from our operations and products. Investors expect ExxonMobil to take leadership in developing solutions to this global challenge as the company plays such a critical role in energy markets.
RESOLVED: Shareholders request that the Board of Directors adopt quantitative goals, based on current technologies, for reducing total greenhouse gas emissions from the Company's products and operations; and that the Company report to shareholders by November 30, 2013, on its plans to achieve these goals. Such a report will omit proprietary information and be prepared at reasonable cost.