ExxonMobil on Thursday (March, 20) agreed to publish a “Carbon Asset Risk” report describing how it assesses the risk of stranded assets from climate change, according to the press release issued by the shareholder advocacy groups that negotiated the agreement.
Arjuna Capital, the sustainable wealth management platform of Baldwin Brothers Inc., and As You Sow, a non-profit promoting environmental corporate responsibility, have agreed to withdraw their shareholder resolution in exchange for ExxonMobil providing information to shareholders on the risks that stranded assets pose to the company’s business model, how the company is planning for a carbon constrained world, and how climate risks affect Exxon’s capital expenditure plans.
The announcement sparked enthusiastic response among non-profit and advocacy groups committed to raising attention on issues related to “unburnable carbon”. According to British group Carbon Tracker, the “landmark agreement” reached on Thursday confirms the topic “is going mainstream in the business sector, making companies increasingly aware of the potential systemic risk represented by the carbon bubble and the necessity to shift towards a low carbon economy”. “The shift is a sign of a growing acceptance among investors and companies that the value of fossil fuel assets may be out of line with evolving policies on global warming”, wrote the New York Times in reporting the news.
According to Bloomberg, Exxon Mobil will post the report on its website by the end of March.