31 December 2017

US Corporate Law News: Exxon Mobil agrees to disclose climate change impacts following shareholder proposal

Yin T. Ho
Partner | US

On December 11, 2017, Exxon Mobil Corp. announced that it will now disclose the impacts of recent climate change policies associated with energy demand sensitivities; the implications of two-degree-Celsius scenarios; and positioning for a lower-carbon future. In a reversal from prior requests, Exxon's announcement follows a shareholder proposal submitted by the New York State Common Retirement Fund in late April 2017. The Fund had requested that Exxon disclose the impacts of the Paris Agreement (in which the UN Framework Convention on Climate Change established a two-degree-Celsius limitation on average global temperature rise) on Exxon's oil and gas demand, the resilience of Exxon's portfolio of oil and gas resources through 2040 and beyond, and the financial risks associated with the Celsius limitations. Exxon joins BP, ConocoPhillips and Royal Dutch Shell, among others, in incorporating impacts of the Paris Agreement into their long-term policies. For more information, see https://www.sec.gov/Archives/edgar/data/34088/000003408817000057/r8k121117.htm.

Yin T. Ho Partner | San Francisco