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By Sabrina Kessler
Far-reaching allegations about how a climate-sinning American multinational could shamelessly lie to the public about its wrongdoing mobilized a small group of New York students on a cold November morning. They stood in front of New York's Supreme Court last week to follow the unprecedented lawsuit against ExxonMobil.
The case is not about the damage to the planet the energy giant has caused. Instead, ExxonMobil is being forced to answer allegations that it played down the consequences of climate change to consumers and investors for decades.
What looked like a clear victory for the Attorney General's Office, however, now threatens to turn into a damp squib. The prosecution quickly admitted it had failed to prove that the company deliberately deceived shareholders and a few days ago, Assistant Attorney General Jonathan Zweig dropped one of the main allegations — investor fraud.
The state of New York had wanted to prove that the Texas-based oil giant knowingly misled shareholders. ExxonMobil is said to have built a "long-standing fraudulent system" to cover up the true impact of climate change. All this to push up the stock price. Similar allegations were once made against the tobacco industry, which publicly denied the risk of cancer, even though it knew better. What followed were penalties in the billions.
ExxonMobil did not respond to a request from DW. The Group's website contains a statement from last month in which the company promised it would be exonerated in court: "The allegations of the New York Attorney General are false," it said.
The student protest is one of several held outside the New York Supreme Court during the trial.
Investors had been informed through regular announcements about how the company responds with climate-related risks, the company added. "The New York attorney general's case is misleading and deliberately misrepresents a process we use to ensure company investments take into account the impact of current and potential climate-related regulations."
However, this remaining lawsuit is not just against any company, but one built by the man once considered to be the richest American of all time. ExxonMobil's roots go back to John D. Rockefeller, the U.S. oil magnate who built one of the country's first oil refineries in 1863. His company, the Standard Oil Company, grew so powerful that within a few decades the U.S. Supreme Court ordered it to be broken up into more than 30 companies, two of which grew into today's ExxonMobil.
This company, in turn, rebuilt itself into one of the largest in the world: the oil multinational recorded sales of $279 billion (€253 billion) last year alone. By way of comparison, Apple achieved $266 billion in 2018.
Former U.S. Secretary of State Rex Tillerson previously had a decade-long tenure as Exxon Mobil's chair and CEO.
Impact Known for Years
Success does, however, have its negatives. ExxonMobil is one of the largest global climate sinners. Not only are forests being cleared and waters and soils polluted to unearth more than 4 million barrels a day of black gold, the oil giant also contributes almost 2% to global carbon dioxide (CO2) emissions, according to calculations from the UK-based Carbon Disclosure Project. Over the last 50 years, it has created 42 billion tons of CO2.
The oil companies know only too well how much they endanger the climate. Exxon Mobil, for example, is said to have known since the 1970s about the impact the oil business was having on the planet. However, these findings never reached the outside world. "Exxon Mobil is a climate criminal," alleges 350.org, a nonprofit environmental organization that supports students in their protests.
Despite this, the state of New York has not yet been able to prove ExxonMobil's culpability. Not a single shareholder who testified in court claimed to have been deceived. The prosecution now has to prove that the oil giant was wrong to assure its investors that it was adequately preparing its own business for a decarbonized future. A ruling is expected in the coming weeks.
ExxonMobil's biggest challenge, however, is a different one. A glance at Wall Street data reveals that the energy sector is increasingly losing its standing. Today, the industry represents less than 5% of the total market value of all companies indexed in the S&P 500. Five years ago, it was still over 15%.
Oil Price Remains Low
ExxonMobil is struggling with its greed for profits. Since its all-time high five years ago, the stock price has collapsed by a third. It has long been clear that coal, gas and oil can no longer earn as much as they used to. Coal, for example, is increasingly being replaced by natural gas, which is much cheaper. Oil is also being fractured in such quantities that the market is literally flooded. Not even the military attacks on Saudi Arabia's oil fields in September caused a lasting rise in the price of oil. It has lost 20% since January.
Exxon Mobil has the 14th-largest oil and gas reserves and is the largest refiner in the world.
For analysts, one thing is clear: ExxonMobil needs new ways to revive itself. "The Stone Age didn't end because the stones ran out," analyst Stewart Glickman of CFRA Research told DW. In other words, it will not be the lack of oil that will put a spoke in the wheel for the oil giants, but the lack of profitability. Competitors like Royal Dutch Shell have long been experimenting with renewable energies in order to do justice to the zeitgeist. ExxonMobil is years behind.
The company's future strategy is still heavily reliant on fossil fuels. This includes the production of shale oil (fracking) in the West as well as natural gas plants in Papua New Guinea, oil wells in South American Guyana and the development of new fields in Brazil and Mozambique.
The Group intends to invest $230 billion in these projects in the coming years. However, only a fraction of this is for environmentally friendly technologies. The oil giant has committed just $10 billion to these types of projects — in the last twenty years.
Reposted with permission from DW.
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In a troubling sign for the future of the Italian Alps, the snow and ice in a glacier is turning pink due to the growth of snow-melting algae, according to scientists studying the pink ice phenomenon, as CNN reported.
By Abdullahi Alim
The 2008 financial crisis spurred a number of youth movements including Occupy Wall Street and the Arab Spring. A decade later, this anger resurfaced in a new wave of global protests, from Hong Kong to Beirut to London, only this time driven by the children of the 2008 financial crisis.
1. Learn From the Past<p>Young people tend to be comfortable with change. Their instant adoption of technology is an example.<a target="_blank"> However, they may lack an understanding of the more permanent realities – requiring patience and </a>stoicism.</p><p>This wisdom is typically in the hands of individuals who either work within systems or who have accumulated far more tenure. This was effectively echoed by 13-year old activist, Naomi Wadler who <a href="https://www.youtube.com/watch?v=17Aa6XLZe9A" target="_blank">said</a>, "We can educate our youth a lot better. We're not delving deeper into social justice movements from the past."</p><p>Youth movements that are informed by the success and pitfalls of prior efforts offer a more promising outcome. Take for example, the Black Lives Matter (BLM) movement, co-founded by a 32-year old Alicia Garza.<span></span></p><p>Unlike the civil rights movement of the 1960's, BLM lacks central governance. This means that opponents can't attack its leadership as a means to discredit the whole movement. In the 1960's, this is exactly what happened to the civil rights movement, when critics went after Martin Luther King, stalling the collective efforts of the movement.</p><p>In fact, King spent his final year <a href="https://eu.usatoday.com/story/opinion/2018/04/04/martin-luther-king-jr-50-years-assassination-donald-trump-disapproval-column/482242002/" target="_blank">mired in public disapproval</a> with over 75% of Americans considering him "irrelevant" including 60% of African Americans.</p><p>By studying the legacy of previous efforts, BLM has managed to rally approximately <a href="https://www.washingtonpost.com/politics/big-majorities-support-protests-over-floyd-killing-and-say-police-need-to-change-poll-finds/2020/06/08/6742d52c-a9b9-11ea-9063-e69bd6520940_story.html" target="_blank">75% of the American public</a>; a feat that will undeniably ensure the longevity of its cause.</p><p>For the youth climate movement, it too must reconcile the long record of activism that predates its tenure. It ought to model itself as an intergenerational movement by giving greater credence to the activists, environmental scientists and <a href="https://www.weforum.org/agenda/2020/05/juan-manuel-santos-colombia-indigenous-peoples-coronavirus-pandemic-climate-change-environment-nature/" target="_blank">indigenous elders</a> that have fought for climate justice before its inception and ultimately signal the nuance and maturity that would activate allies within systems of power.</p>
2. Become Part of Systems Change<p>From the college campus to the coworking space, you would be hard pressed to avoid the sight of a social impact competition that invites young people to resolve some of the world's most intractable problems.<br></p><p>Unsurprisingly, this often leads to problematic and incomplete solutions. Take, for example, <a href="https://ssir.org/articles/entry/tackling_heropreneurship" target="_blank">an app for African farmers</a> developed by students who have neither farmed nor been to Africa.<br></p><p>Fortunately, there is a growing shift towards empowering young people to better diagnose the systems that uphold inequality. For example, Oxford University hosts the annual <a href="http://www.oxfordglobalchallenge.com/" target="_blank">Map the System</a> competition to celebrate some of the most promising youth-led mappings and the World Economic Forum's <a href="https://www.globalshapers.org/story" target="_blank">Global Shapers Community</a> convenes more than 7,000 young people under the age of 30 to address local, regional and global challenges.</p><p>To achieve systemic change, young changemakers must first unpack systems into <a href="https://wtf.tw/ref/meadows.pdf" target="_blank">three components</a>; elements, interconnections and functions:</p><ul><li>Elements are essentially the key stakeholders in the system. This can include individuals, land or objects.</li><li>Interconnections are the laws and social norms that bind the elements together.</li><li>Functions are the end-goals.</li></ul><p>Take for example, the persistence of sexual harassment in the workplace as a systems issue. The elements in the system would include the victim, perpetrator and other intermediary bodies including line managers and human resource teams. The interconnections could include forced arbitration laws that prohibit employees from seeking public courts and a managerial culture that protects high performing perpetrators and pressures victims into silence. In which case, the ultimate functions (or rather dysfunctions) of the system discourage victims from pursuing action and enable perpetrators and enablers to enjoy the benefits of career progression without due trial.</p><p>Systemic change is about redesigning the interconnections (the cultural norms and laws). In the example above, it involves challenging the use of private arbitrary courts and uprooting a toxic work culture. Reclaiming this intuition opens a pandora's box that ultimately allows for any given system to operate more inclusively.<br></p><p>Today, young changemakers can rely on online resources like <a href="http://systems-ledleadership.com/" target="_blank">Systems-Led-Leadership</a> to analyze any given system of inequality and then direct their unique skills and knowledge towards the most effective intervention.</p>
3. Avoid Heropreneurship<p>Daniela Papi-Thornton first coined the term <a href="http://tacklingheropreneurship.com/" target="_blank">heropreneurship</a> to describe a growing trend that credits social change to the "founder" of an organization or movement exclusively.</p><p>This culture has inspired an entire generation of young change-makers who are swayed by the allure of the "heroic" founder and whose behaviors are validated through youth awards, grants and speaking circuits that glorify a role in the limelight. This pervasive culture undercuts the entire spectrum of actors that really creates social change.</p><p>Social change does not necessarily warrant the creation of a new organization or movement. Change-makers should consider the root causes that perpetuate and uphold inequalities and then map the existing players and solutions. This process might point to scaling up the work of an existing organization or helping a local candidate run for office.<br><br>For young people who wish to create social change, their efforts – while extremely important – may go unnoticed. This is an expectation that needs to be managed.<br></p>
4. Know Your Place<p>In 2016, a political action committee entitled <a href="http://canyounot.org/" target="_blank">Can You Not</a> emerged with the aim of discouraging white men from running for office in minority districts.</p><p>Despite the comical graphics, the campaign highlights an important question for young changemakers, particularly if they advocate for issues that they have not lived: in the quest for social change, can the actions of change-makers unwittingly perpetuate injustices, even as they seek to end them?<br></p><p>In the example above, could the notion of a white man effectively assuming the role of a translator between minority communities and government only reinforce their structural underrepresentation in political decision-making? Could the desire to assume office without lived experience also signal little faith in the leadership of the very communities being served?<br></p><p>A more effective approach to social change may be to encourage such actors to take stock of the unintended consequences of misrepresentation. In doing so, they may come to appreciate the importance of "stepping back" to allow others to "step forward." More concretely, this could result in building trusted relationships with the community and eventually empowering more local voices to consider public leadership.<br></p><p>For young changemakers, it is pivotal that they assess their own standing in a given system and avoid perpetuating the very inequalities they wish to tackle.</p>
Strategic Intelligence: Youth Perspectives. World Economic Forum
A More Targeted, Effective Kind of Activism<p>Social media has played its critical part in providing young people with a vehicle to advocate for social reform.</p><p>Whether it's <a href="https://www.theguardian.com/environment/2019/sep/23/greta-thunberg-speech-un-2019-address" target="_blank">Greta Thunberg's speech</a> during the United Nations General Assembly in 2019 or <a href="https://variety.com/2018/politics/features/emma-gonzalez-parkland-interview-1202972485/" target="_blank">Emma Gonzalez</a> rallying crowds for more stringent gun control. younger voices are swaying public opinion and pressuring political systems to operate more inclusively.<br></p><p>The impact of these extraordinary young people is inspiring, but arguably they struggle to provide a course of action for the average young person who is motivated to pursue social change. The inconvenient truth is that social reform is difficult and even more so for a young person who wrestles with challenges related to experience and credibility.<br></p><p>To be more effective, young changemakers must forge greater bonds with late-stage activists as well as potential allies within systems of power. They must also understand the systems that uphold equality and pinpoint the intervention that would most likely inspire systemic change.<br></p><p>Finally, it is pivotal that they invest in a support system and seek to dissolve <a href="https://www.weforum.org/agenda/2020/06/this-is-how-wellbeing-drives-social-change-and-why-cultural-leaders-need-to-talk-about-it" target="_blank">personal anxieties</a> that may compromise their change-making potential.</p><p>It's time for youth activism to grow up.</p>
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The Supreme Court late Monday upheld a federal judge's rejection of a crucial permit for Keystone XL and blocked the Trump administration's attempt to greenlight construction of the 1,200-mile crude oil project, the third such blow to the fossil fuel industry in a day—coming just hours after the cancellation of the Atlantic Coast Pipeline and the court-ordered shutdown of the Dakota Access Pipeline.
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