Home     News     Maps     Data     Research     Impacts     Renewal     War     Skeptics     Energy     Resources     Weather     Injustice

Subscribe for updates,
feeds, and newsletter
Enter your email address:

Delivered by FeedBurner


Follow us on Twitter


Exxon Facing Shareholder Revolt Over Approach to Climate Change

<-- Climate Shift

Bookmark and Share

Source: Truthout

By Andrew Clark
The Guardian UK

Monday 19 May 2008

New York - A shareholder revolt at ExxonMobil led by the billionaire Rockefeller family has won the support of four significant British institutional investors who will call on Monday for a shakeup in the governance of the world's biggest oil company.

Guardian.co.uk has learned that F&C Asset Management, Morley Fund Management, the Co-Operative Insurance Society and the West Midlands Pension Fund are throwing their weight behind a resolution demanding that ExxonMobil appoints an independent chairman to stimulate debate on the company's board.

Exxon is facing a rebellion from its investors over its hardline approach to global warming. The firm has refused to follow rival oil companies in committing large-scale capital investment to environmentally friendly technology such as wind and solar power.

The Rockefeller dynasty, whose ancestor John D Rockefeller founded the original oil business at the core of ExxonMobil, have sponsored four shareholder resolutions demanding changes at Exxon. One of these calls on Exxon's chief executive Rex Tillerson, to relinquish his role as chairman in favour of an outsider to bring in an alternative point of view.

The London-based corporate governance advisory service Pirc intends to recommend that institutions support this proposal, which is in line with best practice on corporate boards in the UK.

F&C Asset Management's director of governance and sustainable investment, Karina Litvack, said it could pave the way for a different attitude at Exxon towards the environment.

"Despite top-notch individual directors, the company's record over the last decade, particularly regarding climate change, demonstrates that debate has been lacking," said Litvack. "By bringing in an independent chairman, the company can better leverage that creativity and challenge, and avoid over-dominance by management."

Exxon maintains that present green technologies are not financially viable. But critics on Wall Street and in the City fear that the company's reluctance to explore alternative energy will prove to be bad business judgment in the long run as rivals such as BP seek to capture public affection by re-branding themselves as environmentally sensitive enterprises.

The Rockefellers point out that Exxon has $25bn of capital investment planned in carbon-based fuel but its environmental commitment is centred on a relatively modest $100m to fund a Stanford University project on climate change.

If the rebellion continues to gather pace, Exxon could suffer an embarrassing defeat at its annual meeting in Dallas later this month. At last year's meeting, 40% of investors' votes were cast in favour of a similar call for an independent chairman and the Rockefellers' involvement this time has raised the profile of the battle.

In the US, three advisory firms - RiskMetrics, Glass Lewis and Proxy Governance - have urged fund managers to support the Rockefellers' resolution. The result of the vote is not binding on Exxon but the company has said that its board will reconsider any of its policies challenged by successful shareholder resolutions.

An Exxon spokesman last night responded to the British institutions' stance by re-asserting the company's position that its board is better placed than investors to decide on the leadership structure.

In a written response to the shareholder resolutions earlier this month, Exxon said its board members possesses "considerable experience and unique knowledge of the challengers and opportunities the company faces."

<-- Climate Shift

Bookmark and Share

Contact: mike@climateshift.com

Privacy, Fairuse & Disclaimer

 

Climate Shift Blog for updates, questions and answers

Blog Updates

Subscribe in a reader

News
Maps & GIS
Data
Research
Impacts
Renewal
War & Security
Skeptics
Energy
Resources
Weather
Injustice
Videos
Google Earth Mashups

Climate Shift Updates

Copyright © 2004-2017 Michael Meuser, All Rights Reserved.