Exxon Shareholder Concerns Expressed
by Jane Dale Owen
The 2003 annual ExxonMobil shareholders meeting in Dallas, May 28, gave
shareholders an opportunity to introduce prepared proposals addressing an array of
company policy concerns. Jane Dale Owen* of CLEAN (Citizens League for
Environmental Action Now) was represented at this meeting by two new interns, Goeff
Castro and Charles Stillman. They provided the following report of the proceedings:
The meeting began with Exxon Board Chairman and CEO Lee Raymond
presenting an overview of the company’s actions over the past year regarding
revenues, world locations, and a brief update on the construction of the world’s
largest liquefied natural gas pipeline system in Qatar.
ExxonMobil’s involvement in the G-CEP (the Global Climate and Energy Project)
was a highlight of the introduction. This project is a collaboration between the scientific
and engineering community and major global companies to develop new energy
technologies for the future. The project is led by Stanford University and sponsored by
ExxonMobil (which plans to invest $100 million); General Electric (which plans to invest
$50 million); and Schlumberger (which plans to invest $25 million).
The stated goal of the project is to accelerate the development and use of low
greenhouse gas (GHG) emission energy technologies by merging pre-commercial basic
research with the practical knowledge and experience of major corporations. The focus
of the research will be on developing solutions that help meet society’s objectives for
abundant energy, high efficiency, clean air, and substantial reductions in GHG emissions.
ExxonMobil’s involvement in such a project is to be commended. However, these
efforts when placed in context, reveal that the company may in fact be using its
involvement in the G-CEP to subdue organizations and individuals who have called on
ExxonMobil to assume greater responsibility for care of the environment which its
products pollute.
Yes, the $100 million dollar figure seems staggering. However, it represent 1/60th of
ExxonMobil’s annual internal research budget for the ten years that the company has
proposed to help fund the G-CEP and 1/10 of 1% of what the company has stated it will
invest in new oil and gas and development. While ExxonMobil continues to invest
entirely in oil and gas, other companies in related industry sectors such as BP, Shell and
ChevronTexaco, have developed strategies to incorporate renewable energy, carbon
trading, and reduction of greenhouse emissions.
There would have been real cause for celebration had this study been placed in Texas
where The science departments at the University of Texas, Texas A&M, or Rice
University are eminently qualified by both academic resources and local experience with
the complex air pollution problems of our local environment, to come up with the best
solutions for remediation of global air pollution (notably GHG) problems. What better
laboratory could there be?
The concentration of scientific, engineering and technical professionals per capita
presently exceeds that of any other metropolitan area in our nation. The technology to
greatly reduce greenhouse gases and toxic pollutants is here today. Wind power, solar
energy, geothermals, biomass and the highly developed hybrid engine are all available
now.
There are many existing conservation measures that can be implemented without
further protracted study. Unfortunately the Senate recently shelved a conservation
measure (S. 794) to propose an average fuel economy standard of a 40 mile per gallon
minimum for passenger automobiles by the year 2014. This is an example of a
promising conservation measure that failed to be enacted because of intensive lobbying
by the oil industry and the automobile manufacturers.
At the May 28 meeting, two main shareholder concerns emerged regarding the
environment: Resolutions 14 and 15. Resolution 14 called for an evaluation of the
potential financial risks from climate change, and how the company will mitigate those
risks. This resolution urging the company to take a stronger stand received a 22 percent
vote at this year’s meeting, a slight increase in support since last year.
According to the United States Public Interest Research Group, last year’s resolutions
regarding global warming among companies received an average of 18% of shareholder
support. “This year they are averaging more than 25 percent at more than twice the
number of companies.” This year alone shareholders, spurred on by a coalition of
environmental and religious groups, have filed 31 global warming issues with 23 U.S.
companies that include auto manufacturers, electric power companies and oil companies.
(Environmental Groups Gain as Companies Vote on Issues--NY Times, May 29, 2003)
Resolution 15, which calls for ExxonMobil to begin investing some of its resources in
renewable energy, received a 21% shareholders vote of support, only a slight increase
over last year’s vote, after two years of dramatic gains.
The expectation of these resolutions was not to win majority support, but rather to
voice, in front of the Chairman and CEO, the board members’ and share holders’
environmental and social concerns that the company has either neglected to address or
has inadequately addressed.
The encouraging note is that organizations who are spearheading refinery reform are
making positive progress. We urge everyone who is concerned about the deficiency in
environmental reforms by ExxonMobil, and are interested in more action on these
shareholder resolutions, to write to Peter Altman with reference to Campaign
ExxonMobil. The address is 611 S. Congress, Austin, 78704. Or you may Email him at altman@seedcoalition.org.
For information on other refineries, you may contact Denny Larson of the Refinery
Reform Campaign at dennylarson@earthlink.net
