On May 31, shareholders at Exxon Mobil Corp. (“ExxonMobil”) voted in favor of a climate change resolution asking the company to publish an annual report on the business impact of measures designed to limit global temperature increases to 2 degrees centigrade, the target set by the Paris Agreement.
The non-binding resolution passed with more than 62% of the votes cast. Specifically, the resolution asks that,
…beginning in 2018, ExxonMobil publish an annual assessment of the long-term portfolio impacts of technological advances and global climate change policies, at reasonable cost and omitting proprietary information. The assessment… should analyze the impacts on ExxonMobil’s oil and gas reserves and resources under a scenario in which reduction in demand results from carbon restrictions and related rules or commitments adopted by governments consistent with the globally agreed upon 2 degree target.
Several large financial firms, including BlackRock, Inc., supported the resolution, which was opposed by corporate management. As noted previously, BlackRock had previously supported a similar shareholder resolution which passed at Occidental Petroleum on May 12.
Notably, the resolution passed on the day in which many media outlets reported that the United States will rescind its support for the Paris Agreement. President Trump intends to make a formal announcement regarding the Trump Administration’s position on the Paris Agreement on June 2. Many American companies, including ExxonMobil, have argued that the United States should remain a party to the Agreement.