Shareholders ask ExxonMobil to produce report on risks of oil drilling in sensitive areas
Eight Percent of ExxonMobil Shareholders Vote in Favor of Sensitive
Areas Resolution
Press Release
May 25, 2005
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Strong support demonstrates that investors believe that drilling in
protected areas like the Arctic Refuge is bad for business and bad for
the environment
ExxonMobil shareholders sent a clear message to the company today when
8.1 percent voted in favor of a shareholder resolution asking
ExxonMobil to produce a report on environmental and business related
risks of oil drilling in sensitive and protected areas worldwide, such
as the Arctic National Wildlife Refuge. The U.S. PIRG Education Fund,
Green Century Capital Management, and Clean Yield Asset Management
organized the resolution.
“Today shareholders made it clear that ExxonMobil should change its
environmental policies,” said Justin Tatham of U.S. PIRG. “Hopefully,
ExxonMobil executives will learn from this vote that an oil company
cannot promote responsible environmental policies while also funding
groups like Arctic Power.”
CalPERS and CalSTRS, two of the largest pension funds in the country,
also supported this year’s resolution. The pension funds made their
support for the resolution known to ExxonMobil in separate letters
directed to company Chairman and CEO Lee Raymond.
“As a trustee to two pension funds that hold more than 56 million
shares, I am calling on ExxonMobil to carefully consider its next step
in oil exploration in environmentally protected and sensitive areas,”
said California State Controller Steve Westly, who is an ex-officio
member of both the CalPERS and CalSTRS boards. “It is important for
oil companies to act responsibly and do everything possible to avoid
damage to the environment.”
The shareholder resolution on protected and sensitive areas was filed
as part of an ongoing campaign led by the U.S. PIRG Education Fund and
Green Century Capital Management to protect the Arctic Refuge and to
convince the major oil companies operating on Alaska’s North Slope
BP, ConocoPhillips, ChevronTexaco, and ExxonMobil to abandon any
plans to drill there. Despite recent withdrawals of the three other
major operators on Alaska’s North Slope from Arctic Power, ExxonMobil
remains the only major oil company still funding the pro-drilling
lobby group.
“Given the intensity of public support for the Arctic Refuge,
ExxonMobil would risk a significant backlash if it decided to operate
there,” said Green Century’s Michael Leone. “We believe that
shareholders have a right to know why their company is risking
shareholder value by publicly promoting a project that is opposed by a
majority of Americans.”
BP and Shell, two of ExxonMobil’s major competitors, address their
operations in sensitive areas by increasing disclosure. The two
companies have also adopted policies to address where development is
appropriate and which areas should be preserved.
The resolution specifically called for the company to prepare a report
for shareholders examining the potential risks to shareholder value
involved in operating in sensitive and protected areas worldwide. A
similar resolution received 9 percent of a vote of ChevronTexaco
shareholders in April 2005.
U.S. PIRG is the national lobbying office for the state Public
Interest Research Groups. PIRGs are nonpartisan, nonprofit
environmental and consumer advocacy organizations that are active
across the country.
Green Century Capital Management (GCCM) is an environmental investing
firm which focuses on environmentally progressive companies and uses
shareholder advocacy to improve environmental responsibility.
For Immediate Release: May 25, 2005
For More Information: Michael Leone 617-426-5566
