Ten days ago, the President of the United States decided to withdraw from the international Paris Accords. And in typical Trumpian fashion, the news overshadowed all other climate change news that occurred during that time.
But just one day before the President’s announcement, ExxonMobil held its Annual Meeting of Shareholders in Dallas, Texas. Of the thirteen shareholder proposals that were submitted for consideration, the twelfth was a proposition that the firm publish an annual assessment of its ability to meet the Paris Accord’s climate change targets. Exxon management formally recommended that its shareholders vote down the proposal.
But guess what? The shareholders voted to approve it! New York State Comptroller Thomas DiNapoli, who played a key role in the battle, proclaimed that “this is an unprecedented victory for investors in the fight to ensure a smooth transition to a low carbon economy.”
Is it actually a victory, though? Feel free to skim the original proposal on pages 62 and 63 of the Meeting Materials. Then skim Exxon’s formal recommendation on pages 63 and 64. Is it clear to you what DiNapoli and his supporters actually gained from the vote?
In essence, their proposal asked the firm to publicly disclose the impact of the Paris Accords on Exxon’s portfolio of energy assets. It then provided a fair amount of descriptive detail about what they have in mind.
Then Exxon responded that it already publishes equivalent information for public use. In turn, it also provided a fair amount of descriptive detail about the content of its publications, even though it didn’t address the proposal on a point-by-point basis.
So what was the outcome of this legal process? On the one hand, the shareholders of Exxon have approved a proposal to require the firm to disclose meaningful climate change information to the public. But on the other hand, Exxon has asserted that it already does so.
Given the President’s announcement about Paris, it is certainly understandable if environmentalists believe that any victory warrants a celebration. Nevertheless, if this truly represents “an unprecedented victory … in the fight (for) a low carbon economy,” they’re in for a very long fight.