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In a pivotal win, a Oakland-based non-profit advocacy group, As You Sow defeated ExxonMobil’s try to conceal an innovative, initial of a kind shareholder resolution. The resolution asks Exxon to news a appetite resources in an energy-neutral metric—BTUs—in further to the traditional “barrels of oil equivalent” standard. Establishing a climate-friendly magnitude of appetite pot is a pivotal step in incentivizing management, and a market, to support a transition to a clean energy economy.
“We are gratified a SEC sided with shareholders endangered with meridian risk,” pronounced Danielle Fugere, As You Sow’s boss and arch counsel. “Exxon contingency concede shareholders to opinion on this initial step on a path toward purify energy. Broad support will give government a embodiment to rise a different and profitable low CO business plan, while progressing 100 percent BTU appetite replacements.”
In response to Exxon’s SEC bid to stop a fortitude from being voted on by shareholders, As You Sow successfully argued that, “… in a fast decarbonizing economy, hoary fuel companies contingency rise climate change-responsive business models” and one probable trail is to transition into appetite companies not contingent on CO intense, meridian deleterious commodities.
Exxon now accounts for a appetite resources in “barrels of oil equivalent.” As You Sow remarkable in a SEC reply that this accounting magnitude discourages a low CO transition by joining a calculation of a company’s assets, and therefore a value, to CO based-metrics.
The fortitude proposes reporting company appetite resources neutrally, by category, so that all resources—including solar, wind, biofuels, geothermal and other renewables—will be accounted for as BTUs and valued. This metric decouples Exxon and a shareholders from oil’s disappearing profitability, a sharpening meridian repairs and Exxon’s decreasing ability to economically reinstate a oil reserves.
Shareholders find Exxon’s care in commencement a unavoidable transition to apropos a diversified energy association means to contest in a decarbonizing economy.
As You Sow is concurrently filing a petition with a SEC to change a stating mandate to an energy neutral metric, that will giveaway a oil attention as a whole from oil-dependent financial valuation.
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