Climate activists are increasingly putting pressure on investors to withdraw investments from major fossil fuel companies, on the grounds that these companies’ “carbon assets” are likely to be “stranded” in the future as the effects of climate change become too far-reaching for policymakers to ignore. In that event, the activists argue, the oil and other fossil fuel companies will not be allowed anymore to exploit their assets, which would leave them stranded and destroy much of the value of those companies. (The notion of stranded carbon assets is also known as the “carbon bubble”.)
For the first time a major oil company, ExxonMobil, has responded to the pressure from activists by releasing a report on its own stranded carbon asset risks. In this report, ExxonMobil expresses the view that there is limited basis for concern. Shareholder advocates Arjuna Capital and As You Sow– which withdrew a shareholder resolution when ExxonMobil agreed to release the report — expressed disappointment with aspects of this response, but at the same time noted that it is “a historic first step forward, providing greater insight into how Exxon is approaching climate change risk and representing an end to the company’s previous refusal to acknowledge climate change issues.”
ExxonMobil’s report can be found here.
The company also released a report on Energy and Climate which can be found here.
Or check the reports on Exxon’s website here.