ExxonMobil’s climate plans are being challenged by the largest asset manager in the UK, Legal & General Investment Management (LGIM) and a US investor amid worries that the oil and gas giant is failing to disclose the costs associated with transitioning to meet environmental goals.
A resolution urging the board of Exxon to disclose information on the transition costs has been lodged with Christian Brothers Investment Services ahead of the company’s annual meeting next month.
The top shareholders’ coordinated action shows that the board of the US oil major is coming under increasing pressure to advance its climate change initiatives.
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The action could set off a shareholder conflict because several significant corporations are anticipated to face scrutiny over their energy transition at their annual meetings in the coming months.
According to LGIM, the concerns were based on the cost of Exxon decommissioning its assets to meet net-zero agreements, noting that the gas major had not provided details — even though many of its peers have revealed this information. Exxon has a market value of about $470bn.
The UK asset management stated that such information was “vital for the company’s shareholders” and that investors had “concerns around costs associated with the decommissioning of Exxon’s assets in the event of an accelerated energy transition”.
Story was adapted from Financial Times
