By Timothy Cama - 03/21/14 11:09 AM EDT
Oil giant ExxonMobil Corp. will disclose how possible climate change regulations such as stricter limits on carbon emissions could impact its assets, shareholder activists said.
For the first time, the company agreed to publish on its website how it assesses the risk of “stranded assets,” such as lower values for its oil and gas, activist foundation As You Sow and wealth management group Arjuna Capital said Thursday.
ExxonMobil will publish the report by the end of March, the groups said. The company declined to comment.
“That the largest American oil and gas company is the first to come to the table on this issue says a lot about the direction that energy markets are taking,” Danielle Fugere, president of As You Sow, said in a statement.
As You Sow and Arjuna Capital had proposed a shareholder resolution to compel the disclosures on climate change. They sought information on how the company would deal with less demand for oil and gas, how new rules would affect expenditure plans and other details.
The groups withdrew the resolution after ExxonMobil agreed to publish the report. Similar resolutions have been filed at 10 other energy companies, they said.
FirstEnergy and Peabody Energy, both major electricity providers, have also agreed to similar disclosures about climate change.