Chevron, Exxon Shareholders Vote On A More Proactive Approach To Climate Change
Both companies have their annual shareholder meetings this week, and investors have the chance to vote on a number of climate change resolutions aimed at forcing the two oil giants to be more proactive.
Shareholders want the companies to identify the long-term threat of global climate change regulations and prepare for the potential fallout for the oil business.
For example, one of several resolutions on the table at the Exxon meeting is to add a climate change expert to the company’s board. Not surprisingly, Exxon is recommending a “no” vote, arguing that a “single-issue” board member would not be in the best interest of the company.
Among the resolutions on the table for Chevron shareholders is a call for the company to publish an annual report outlining the potential long-term impact that climate change legislation could have on business operations. Again, the company recommends a “no” vote, calling such a report “unnecessary.”
Shareholders understandably don’t want the companies blindsided by anti-oil climate change regulations in coming years. Exxon is projecting that global oil demand will continue to climb another 13 percent by 2040. However, the International Energy Agency projects that global oil demand could fall by 22 percent by 2040 if aggressive climate change legislation is enacted.
Disclosure: The author holds no position in the stocks mentioned.
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