XOM Exxon Mobil Corp

New York's state pension fund and the Church of England, both investors in Exxon Mobil Corp., plan to file a shareholder resolution demanding the largest U.S. oil company assess the impact on its business of climate change policy.

The shareholder resolution would require Exxon to conduct an assessment of how its business would fare in the event governments take various actions to limit global warming. Government attempts to tax or put a price on carbon, for example, could affect the viability of some of Exxon's long-term investment plans, said Edward Mason, head of responsible investing for the Church of England, which has a portfolio of about £ 10 billion ($14.44 billion).

The resolution is evidence of a growing trend in Europe crossing the Atlantic. Large European investment companies have become increasingly vocal about climate change business risks in the last year. Governments agreed to limit carbon emissions following U.N. talks in Paris, and Mark Carney, governor of the Bank of England, warned investors must start taking carbon emissions policy risks into account.

"A lot of this is about capital allocation," Mr. Mason said. "To say [no policy changes are] going to happen is an absurdly risky bet."

"The company should look at the possibility of governments around the world imposing a 'carbon tax'," said Patrick Doherty, director of corporate governance at the New York pension fund. "It will help inform investors in helping us to determine where we should put our money."

A spokesman for Exxon said the company wouldn't comment on the shareholder resolution but that it would be considered by the board. The company already attaches a carbon price to its emissions as part of its financial modeling.

The New York State Common Retirement Fund is the third largest U.S. public pension plan and manages assets worth $184.5 billion. Exxon is its second biggest single investment.

Together, the Church, New York State and several other co-filers of the resolution own shares worth over $1 billion. The company is worth about $329 billion in total. Similar resolutions targeting BP PLC and Royal Dutch Shell, which were filed by the Church, were endorsed by their boards and passed last year.

Mr. Mason said he believes the Church has a duty to push company management to spend more time considering risks associated with climate change. The Church excludes investment in some sectors, such as gambling, thermal coal and pornography, but for oil producers it takes an activist approach instead.

"It's about stewardship of creation, the planet and life," he said.

Write to Juliet Samuel at juliet.samuel@wsj.com

(END) Dow Jones Newswires

January 15, 2016 14:25 ET (19:25 GMT)

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