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Exxon Mobil challenged on climate change
By Clifford Krauss and John Schwartz
New York Times

HOUSTON — Exxon Mobil has been under pressure for more than a year to explain its handling of climate change issues in the past. Now the company faces new pressure to explain its future, particularly how it will change in response to a warming world.

At the company’s planned annual meeting Wednesday in Dallas, shareholders will vote on a resolution to prod Exxon Mobil to disclose the risks of climate change to its business.

Such resolutions have been floated before, and they typically do not pass. But there is a growing chorus of investors, many of them large institutional shareholders, who say they are worried that Exxon Mobil, the largest publicly traded energy company in the world, is not adequately preparing for tighter times if countries start acting on the pledges they made in December as part of the Paris climate change accord.

Exxon Mobil, for example, projects that global demand for oil will keep growing — by about 13 percent from today, to 109 million barrels of oil a day by 2040.

But the International Energy Agency’s projections include one scenario where demand could drop by 22 percent by 2040, to 74 million barrels a day by that year, if measures are put in place to keep global warming at levels that could avoid the most devastating consequences.

The shareholder resolution calls for Exxon Mobil to publish an annual assessment of impacts of various climate change policies, including ones that would lead to the steep drops foreseen in the most severe energy agency’s forecast. Another resolution calls for the company to give shareholders a bigger say over governance.

Exxon Mobil tried to block the climate change resolution, but the Securities and Exchange Commission ruled in March that shareholders must be allowed to vote.

“Investors can’t afford to have Exxon become the next Kodak,’’ said Scott M. Stringer, the comptroller of New York City, whose pension fund owns roughly $1 billion worth of fossil fuel stocks.

“It is impossible for them to do business for the next 100 years as they have the last 100 years,’’ added Stringer, who supports the risk-disclosure resolution.