When it comes to formulating a concrete response to concerns over the future of the fossil fuel market, American energy companies are uncooperative at best, and actively negligent at worst. In the wake of the climate change conference in Paris that took place earlier this year, many investors are beginning to harbor doubts about the profitability of the oil and natural gas industries. In the Paris accords, nearly 200 nations from around the world agreed to cooperate in a concerted effort to limit the rise in global temperatures to two degrees celsius, or 3.6 degrees fahrenheit. This measure would require global greenhouse gas emissions to decrease to virtually non-existent rates by the year 2070. In order to achieve this, obviously, global consumption of fossil fuels must similarly decrease, which would inevitably create a drastic shift in the oil and natural gas market.
Thus, shareholders of companies like Exxon-Mobil
So how are these industrial energy giants preparing for a future of climate change policies and green energy? It's difficult to say, as they continuously refuse to disclose the information that shareholders are demanding.
In a letter to shareholders, Chevron stated that "Such a report is unnecessary in light of the safeguards and oversight in place through Chevron's business and project planning and enterprise risk management tools and processes," (IBTimes.com). They justified this dismissal of shareholder concerns by suggesting that such a disclosure could put them at a market disadvantage.
ConocoPhillips shareholders recently voted on a resolution calling for a review of the company's lobbying practices. While Conoco acknowledges the threat of climate change, they insist that "uncertainties remain" with regards to the exact details and causes, and they actively lobby against government environmental measures (ConocoPhillips.com). This sort of lobbying history has raised concerns among shareholders, which led to the recent resolution for lobbying transparency. Yet, in spite of shareholder interest, Conoco was vehemently opposed to the resolution, and tried to discourage votes.
Exxon-Mobil has a particularly unflattering history with climate-change policy. They are currently under high levels of scrutiny as a result of on-going investigations led by New York, California, and the Virgin Islands for its connections with groups who propagate climate change denial. There is substantial evidence to suggest that they were involved with numerous campaigns designed to quash climate-change awareness. Thus, it comes as no surprise that EM tried to deny their shareholders the right to vote on disclosure at their annual shareholders meeting this past May. Ultimately, the US Security and Exchange Commission ruled that the company was required to allow a vote, but the proposal to demand disclosure regarding climate change did not pass.
This insistence for discretion seems ominous, at best. Shareholders deserve to know the status of their investments; in order to make proper choices, they require information. By refusing to disclose the details of the impact of climate change policies on their business, these companies are only delaying the inevitable death of the fossil fuel industry, and will hamper global progress towards a future of sustainable energy. It is worth noting that other energy companies outside the US, such as Royal Dutch Shell, Statoil of Norway, and BP have released full disclosures. They recognize the global conditions, as well as the importance of public opinion - in response to public demands for new climate change initiatives, many European energy companies have pledged to seek renewable energy opportunities. Renewable resources are objectively where the future of energy lies - fossil fuel, by its limited nature, can not sustain the world for much longer.
"Exxon, Chevron Face Unprecedented Investor Pressure Over Climate Change Disclosure" - IBTimes
"Exxon Investors Seek Assurance as Climate Shifts, Along With Attitudes" - NYTimes
"Climate Change" - ConocoPhillips.com
