Date: Fri, 23 May 2003 11:33:59 -0400 From: Tim Brennan <brennan@no.address>
It has been a very interesting two weeks in the 2003 Global Warming Shareholder Campaign. Just yesterday, the climate change resolution at Chevron-Texaco pushing for more renewables received 32% of the vote. This is more that triple the last vote in 2001 which received 9%. CERES played a key role in coordinating this campaign and in convincing Institutional Shareholder Services to support the resolution.
In another positive development, last week Institutional Shareholder Services recommended that all of its clients support the global warming resolution at ExxonMobil. This was driven by a new research report commissioned by CERES and Campaign ExxonMobil called SLEEPING TIGER, HIDDEN LIABILITIES: Amid growing risk and industry movement on climate change, ExxonMobil falls farther behind.
The report concludes that ExxonMobil is now alone among the four "supermajor" oil companies in refusing to take meaningful action to mitigate the growing risks posed by global warming. The report, produced by Claros Consulting of London, England, notes that a host of global warming events and trends converging over the last year have "significantly increased" the climate-related risks to the wealth of ExxonMobil shareholders. The report was officially released May 13, and has attracted press coverage (see article from Reuters below). If you would like to see it, it is available for free download from our website at <http://ceres.org/newsroom/press/exxon.htm>http://ceres.org/newsroom/press/exxon.htm .
It will be very interesting to see what the vote is on May 28 given that last year the resolution stunned management when it received the support of 20% of the shareholders.
Also last week, the resolution at TXU, a major power company and producer of greenhouse gasses, received 24% of the shareholders' vote over the objections of management. This is on top of the recent vote at American Electric Power that received 27% of the shareholders' votes.
Clearly, we are succeeding in making companies' responses to the threat of global warming an important issue for many mainstream investors.
If you have any questions or would like more information, let me know.
Best regards,
Tim
-- Tim Brennan Director of Development and Communications CERES, Coalition for Environmentally Responsible Economies 99 Chauncy Street, 6th Floor Boston, MA 02111 Ph: (617) 247-0700 ext. 37 Fax: (617) 267-5400 brennan@no.address <http://www.ceres.org>http://www.ceres.org
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From Reuters 5/15/03
Exxon said to lag majors in climate policy
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NEW YORK - Top global energy company Exxon Mobil Corp. (XOM.N) is the poorest performer among leading world energy producers in responding to global climate change and disclosing greenhouse risks to investors, social investment groups said.
London-based Claros Consulting released a report this week that said unlike its peers BP (BP.L) and Shell Oil Co. (SHEL.L) (RD.AS), Exxon Mobil does not support carbon trading, in which companies that produce greenhouse gases over set limits would have to purchase credits to emit over those limits.
Claros and Boston-based Coalition for Environmentally Responsible Economies also said that unlike ChevronTexaco (CVX.N) and Shell, Exxon does not participate in carbon pricing, which factors in the cost of carbon emissions when deciding whether to go ahead with projects.
Energy companies produce substantial amounts of greenhouse gases such as carbon dioxide, that scientists say cause climate change. Insurance companies such as Munich Re (MUVGn.DE) say greenhouse risks, such as rising seas to low-lying nations and agricultural losses from global warming could soon total hundred of billions of dollars in the next 50 years.
TECHNOLOGY OR TRADE
An Exxon Mobil spokesman said while greenhouse gas emissions may indeed pose a threat, studies must continue to understand the risks and possible consequences.
"Emissions trading really doesn't get you anywhere," said Exxon Mobil's Tom Cirigliano. "The answer is going to be new technology which absolutely reduces carbon dioxide and other greenhouse emissions."
Exxon has made its oil refineries 37 percent more efficient since the 1970s, one example of how technology changes reduce emissions, Cirigliano said.
But Peter Altman, of Austin-based Campaign Exxon Mobil, said Exxon's refinery efficiency lags the efficiency rates of other industries such as chemical and steel as well as the 45 percent more efficient rate of the economy as a whole.
Altman said Exxon Mobil does not disclose greenhouse risks on its financial reports as completely as energy concerns such as BP and ConocoPhillips. On its financial releases to the Securities Exchange Commission BP lists the risks associated with the Kyoto Protocol, which seeks to limit emissions and needs only Russia's approval to go into effect. BP's filings also mention the company's investments in alternative energies like wind and solar power which cut emissions.
But Cirigliano said the company would not seek to quantify its global warming risks. "There's a lot of smoke being blown around the whole issue of global climate change, and we're not going to participate in the PR (public relations) efforts that some companies are involved in and the PR efforts that some environmental groups are involved in."
Claros released the report ahead of Exxon's May 28 annual meeting in which shareholders are set to vote on three climate-related resolutions. At last year's annual meeting, 20.3 percent of shareholders voted for a resolution that would force the company to disclose its strategy for pursuing alternative energies such as wind and solar energy.
Story by Timothy Gardner
Story Date: 15/5/2003
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