Legal & General Investment Management and Christian Brothers Investment Services have joined forces to file a shareholder resolution at ExxonMobil’s XOM-N 2023 shareholder meeting, demanding greater climate-related transparency from the global oil giant.
The groups are fronting a coalition of investors seeking full disclosure of the quantitative impact of net zero emissions scenarios on all Exxon’s asset retirement obligations, citing fears on the costs linked with decommissioning Exxon’s assets in the event of an accelerated transition to cleaner energy.
“We believe such level of disclosure is imperative for investors to better evaluate long-term risks and economic viability of the business in a carbon constrained future,” Michael Marks, Head of Investment Stewardship and Responsible Investment Integration at LGIM, said in a statement.
Last year, a majority of Exxon shareholders backed a resolution seeking an audited report assessing the financial impact of the net zero emissions assumptions, including future asset retirement obligations.
“Despite this, the company’s disclosures still give investors little insight into how retirement costs might accelerate, and how large they might be,” John W. Geissinger, chief investment officer at Christian Brothers Investment Services, said.
LGIM decided in 2019 to divest applicable shares in ExxonMobil from the L&G’s Future World Fund Range, flagging concerns it failed to address risks posed by climate change.