Regulators Allow Exxon Mobil to Strike Climate-Change Resolution

By Patrick Thomas

U.S. regulators have allowed Exxon Mobil Corp. (XOM) to block a resolution from shareholders requiring the oil company to say how it plans to reduce greenhouse gas emissions.

A group of shareholders called for Exxon several months ago to disclose in its annual report its greenhouse-gas goals that would align with the 2015 Paris Climate Agreement effort to keep the global average temperature from increasing more than 2 degrees Celsius. Exxon asked the U.S. Securities and Exchange Commission in January if it could stop the proposal.

The SEC notified both sides on Tuesday that it would not recommend enforcement action against Exxon if the company keeps the item off its annual shareholder vote in May.

"The Proposal would require the Company to adopt targets aligned with the goals established by the Paris Climate Agreement," the SEC said in its letter. "By imposing this requirement, the Proposal would micromanage the Company by seeking to impose specific methods for implementing complex policies in place of the ongoing judgments of management as overseen by its board of directors."

The New York state comptroller, one of the shareholders to push the proposal, said in a statement it will continue to press Exxon on climate risk.

"Exxon's refusal to disclose targets aligned with the Paris Agreement puts it increasingly at odds with its industry peers, who are publicly adopting goals and greater transparency as they address the transition to a lower carbon economy," according to a statement from the New York state comptroller.

Exxon did not immediately respond to requests for comment.

The company has disclosed some information related to its environmental efforts. For instance, in its most recent sustainability report, released in October, the company reiterated its support for the Paris Climate Agreement and its plan to reduce greenhouse-gas emissions from flaring and methane by 25% and 15%, respectively, by 2020, as compared to 2016 levels.

Write to Patrick Thomas at patrick.thomas@wsj.com

(END) Dow Jones Newswires

April 03, 2019 16:35 ET (20:35 GMT)

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