Ceres Statement on Exxon and Chevron Shareholder Votes
May 25, 2016 /3BL Media/ - Investors gave unprecedented voting support for climate ‘stress-test’ resolutions at the ExxonMobil and Chevron annual meetings today. The resolutions, requesting that the companies stress test their business strategies against a scenario where climate change is limited to 2 degrees Celsius or less (the goal of the global climate agreement forged in Paris), received 38.2 percent shareholder support at the ExxonMobil meeting and 41 percent at the Chevron meeting, respectively.
Statement from Ceres Oil and Gas Program Director Andrew Logan:
Today’s strong votes at Exxon and Chevron send a powerful message that investors see climate change as a material financial risk, which underscores the ongoing momentum post-Paris and urgency to prepare for a low-carbon transition. Heading into the meeting, investors managing more than $10 trillion in assets voiced their support for these resolutions, placing substantial pressure on the boards of these companies to change direction as the world moves toward a low-carbon future.
Given the significant resources Exxon spent fighting this proposal, such a strong vote is a real rebuke to company management. Investors have sent a clear message that meaningful 2 degree stress testing is the new norm for risk reporting, and companies like Exxon and Chevron can no longer act as if nothing has changed.
Moving forward, investors expect Exxon and Chevron to come to the table and collaborate to prepare meaningful disclosures to assess the risks and opportunities presented by the energy transition.
