Exxon Opposes Renewables Proxy Vote - Cites "Strong & Proactive" Company Stance

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As President Barack Obama continues pushing his environmental agenda, Exxon Mobil — the slowest of the oil majors to embrace investment in renewable energy — faces a repeat lineup of green shareholder proposals at its annual meeting Wednesday. The world’s largest publicly traded company has not changed its view that its business is oil and natural gas, and it won’t invest in renewables beyond research until they’re profitable without subsidies.

But some influential proxy advisory firms note that such proposals have steadily gained investor support, and the perception that Exxon Mobil has no use for renewables continues to damage its reputation. “The company’s lack of a comprehensive policy on renewables has left many investors with the perception that the company is unwilling to consider such options in the future,” said New York-based RiskMetrics in its proxy paper on Exxon Mobil. "Such a perception has led to substantial reputational damage to the company on this issue,” RiskMetrics said.

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Exxon Mobil regularly discloses emissions reductions in its operations. Last week the company’s annual corporate citizenship report noted that emissions fell by 10 million metric tons to 131 million metric tons last year. But identifying and disclosing quantitative emissions reduction goals could boost shareholder confidence that Exxon Mobil is responding to climate change concerns, Glass Lewis said.

“In light of the company’s checkered past in addressing the area of climate change and its questionable history of environmental stewardship, we believe Exxon Mobil is a prime example of a company where taking a strong and proactive stance on climate change could have a positive impact on long-term shareholder value,” the firm said. Another eco-oriented proposal asks that Exxon Mobil adopt a policy for renewable energy research, development and sourcing, and report its progress to investors next year. The same proposal gained support from 27.5 percent of shares cast last year.

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