Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

SEC Forces Exxon to Bring Climate-Friendly Accounting to Shareholder Vote

Climate

In a key win, the Oakland-based non-profit advocacy group, As You Sow defeated ExxonMobil's attempt to suppress an innovative, first of its kind shareholder resolution. The resolution asks Exxon to report its energy resources in an energy-neutral metric—BTUs—in addition to the traditional "barrels of oil equivalent" standard. Establishing a climate-friendly measure of energy reserves is a key step in incentivizing management, and the market, to support the transition to a clean energy economy.

Shareholders seek Exxon's leadership in beginning the inevitable transition to becoming a diversified energy company able to compete in a decarbonizing economy.

“We are pleased the SEC sided with shareholders concerned with climate risk," said Danielle Fugere, As You Sow's president and chief counsel. “Exxon must allow shareholders to vote on this first step on the path toward clean energy. Broad support will give management the latitude to develop a diverse and profitable low carbon business plan, while maintaining 100 percent BTU energy replacements."

In response to Exxon's SEC bid to stop the resolution from being voted on by shareholders, As You Sow successfully argued that, “... in a rapidly decarbonizing economy, fossil fuel companies must develop climate change-responsive business models" and one possible path is to transition into energy companies not dependent on carbon intense, climate damaging commodities.

Exxon currently accounts for its energy assets in “barrels of oil equivalent." As You Sow noted in its SEC reply that this accounting measure discourages a low carbon transition by linking the calculation of a company's assets, and therefore its value, to carbon based-metrics.

The resolution proposes reporting company energy resources neutrally, by category, so that all resources—including solar, wind, biofuels, geothermal and other renewables—will be accounted for as BTUs and valued. This metric decouples Exxon and its shareholders from oil's declining profitability, its escalating climate damage and Exxon's decreasing ability to economically replace its oil reserves.

Shareholders seek Exxon's leadership in beginning the inevitable transition to becoming a diversified energy company able to compete in a decarbonizing economy.

As You Sow is simultaneously filing a petition with the SEC to change its reporting requirements to an energy neutral metric, which will free the oil industry as a whole from oil-dependent financial valuation.

YOU MIGHT ALSO LIKE

Mark Ruffalo and Annie Leonard: We Must Rebuild Our Democracy

7 Arrested at 'Pancakes Not Pipelines' Protest at FERC

Rockefeller Fund Divests From Fossil Fuels, Slams Exxon

Bill McKibben: Fracking Has Turned Out to Be a Costly Detour

EcoWatch Daily Newsletter

Marco Bottigelli / Moment / Getty Images

By James Shulmeister

Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change.

If you have a question you'd like an expert to answer, please send it to climate.change@stuff.co.nz

Read More Show Less
Luxy Images / Getty Images

By Jo Harper

Investment in U.S. offshore wind projects are set to hit $78 billion (€69 billion) this decade, in contrast with an estimated $82 billion for U.S. offshore oil and gasoline projects, Wood Mackenzie data shows. This would be a remarkable feat only four years after the first offshore wind plant — the 30 megawatt (MW) Block Island Wind Farm off the coast of Rhode Island — started operating in U.S. waters.

Read More Show Less
Giacomo Berardi / Unsplash

The COVID-19 pandemic has revealed both the strengths and limitations of globalization. The crisis has made people aware of how industrialized food production can be, and just how far food can travel to get to the local supermarket. There are many benefits to this system, including low prices for consumers and larger, even global, markets for producers. But there are also costs — to the environment, workers, small farmers and to a region or individual nation's food security.

Read More Show Less
Pexels

By Joe Leech

The human body comprises around 60% water.

It's commonly recommended that you drink eight 8-ounce (237-mL) glasses of water per day (the 8×8 rule).

Read More Show Less

By Michael Svoboda

The enduring pandemic will make conventional forms of travel difficult if not impossible this summer. As a result, many will consider virtual alternatives for their vacations, including one of the oldest forms of virtual reality – books.

Read More Show Less
Public Employees for Environmental Responsibility on Thursday accused NOAA of ignoring its own scientists' findings about the endangerment of the North Atlantic right whale. Lauren Packard / Flickr / CC BY 2.0

By Julia Conley

As the North Atlantic right whale was placed on the International Union for Conservation of Nature's list of critically endangered species Thursday, environmental protection groups accusing the U.S. government of bowing to fishing and fossil fuel industry pressure to downplay the threat and failing to enact common-sense restrictions to protect the animals.

Read More Show Less

Trending

Pexels

By Beth Ann Mayer

Since even moderate-intensity workouts offer a slew of benefits, walking is a good choice for people looking to stay healthy.

Read More Show Less