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Climate change policies present ‘little risk’ to Exxon, company says

Climate change policies present ‘little risk’ to Exxon, company says
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Oil giant Exxon Mobil Corp. on Friday said that global policies to fight climate change are likely to pose “little risk” to its investments.

The nation’s largest oil company released a report, under pressure from activist investors, analyzing how the company would be affected by policies that aim to keep global warming at or below 2 degrees Celsius, the goal mentioned in the Paris climate accord.

Exxon said that some of its liquids assets — oil and natural gas liquids — “may not be attractive investments” with such aggressive policies, but those represent only about 5 percent of the company’s property by value.

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Meanwhile, natural gas use would grow substantially under such a scenario, due mainly to gas’s lower carbon dioxide footprint for electricity use when compared with coal.

A 2-degree scenario would cause “abundant demand growth of this cleaner-burning fuel in the future,” Exxon said, which would help its bottom line.

Exxon has been under pressure for years to be more transparent about how climate change affects its operations. Shareholders voted last year to require the regular disclosures.

The company — whose former CEO Rex TillersonRex Wayne TillersonTrump administration rigging the game, and your retirement fund could be the loser Haley’s exit sends shockwaves through Washington Turkey-Russia Idlib agreement: A lesson for the US MORE is President TrumpDonald John TrumpKey takeaways from the Arizona Senate debate Major Hollywood talent firm considering rejecting Saudi investment money: report Mattis says he thought 'nothing at all' about Trump saying he may leave administration MORE’s secretary of State — supports fighting climate change, specifically through a carbon tax.