I’ve posted on how a number of large companies are beginning to face reality and prepare for a carbon constrained future, with internal carbon pricing. These include Walt Disney, Walmart, and even oil companies like Shell and Exxon.
Despite the efforts of the climate denial machine, science and facts on the ground eventually win out, especially when investor’s money is at stake. Since Bill Mckibben’s widely cited “Do the Math” piece in in Rolling Stone, there has been an increasing awareness that a good deal of fossil fuels still in the ground, in particular the “exotic”, hard to get at tar sands, and oil and gas shales, will have to be left in the ground. This is the “Carbon Bubble” – corporate assets that, if used, will destroy the planetary life support system.
See Jim Hansen addressing that in recent testimony elsewhere on this page. Above, quick powerpoint lecture to bring you up to steam. Here, see Exxon CEO Rex Tillerson’s 2012 acknowledgement of the reality of human caused climate change, and the need to “adapt”.
Now a movement of shareholders has pushed Exxon Mobil to begin cataloging its exposure to carbon bubble risks.
Exxon Mobil Corp. has agreed to publish a report describing its plans for a future in which market forces and stricter climate regulation may leave some of its carbon reserves unburnable.
Exxon Mobil is the first oil and gas producer in the U.S. to commit to reporting on its risks of stranded assets due to climate change.
The commitment came in response to a shareholder resolution filed in the fall of 2013 by wealth management firm Arjuna Capital and shareholder advocacy group As You Sow. The resolution was withdrawn after months of negotiations with Exxon Mobil.
Investors have increasingly raised concerns that stranded assets, also known as a “carbon bubble,” could occur if fossil fuel reserves are suddenly revalued under future government policies for climate change or greenhouse gas emissions.
In its report, Exxon Mobil will let shareholders know what types of reserves it holds—from deep sea drilling, tar sands or elsewhere—so that “investors have a better idea of where the risks lie and how well the company can withstand those risks,” Danielle Fugere, As You Sow’s president, told Bloomberg BNA.
“That kind of differentiation is important to shareholders as they decide which company to invest in,” Fugere said.
The report will also discuss how climate risks could affect Exxon Mobil’s capital expenditure plans. The report will be posted on Exxon Mobil’s website by the end of March.
Continue reading “Huge: Exxon Will Advise Investors on Carbon Bubble Exposure”





