EXXON SHAREHOLDERS TO VOTE ON REPORT ON THE IMPACT OF THE ENERGY TRANSITION ON ASSET RETIREMENT OBLIGATIONS
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Thursday, May 25, 2023
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CHICAGO, May 25, 2023 /PRNewswire/ -- Christian Brothers Investment Services, Inc. (CBIS), a leading investment management firm and Registered Investment Advisor to Catholic investors around the world, today announced that a shareholder resolution co-led by the company and Legal & General Investment Management (LGIM) will go to a vote at the Exxon Annual General Meeting on May 31, 2023.
Key Points:
- On May 19, Reuters reported that proxy advisor Glass Lewis backed the initiative, concluding Exxon could face material financial risks from the net-zero scenario.
- Last year, a majority of Exxon's shareholders voted for a CBIS resolution seeking an audited report assessing the financial impact of the IEA NZE assumptions, including future asset retirement obligations.
- According to John Geissinger, CBIS' Chief Investment Officer, Exxon's disclosures still fail to provide investors sufficient insight into how retirement costs might accelerate and how large those costs might be.
- "Investors have demonstrated their concerns about the potential impacts of the energy transition on Exxon, particularly in cases where the company has an obligation to retire an asset but records no costs on the balance sheet today," says Geissinger.