New York AG Alleges Exxon Misled Investors on Climate
June 02 2017 - 8:38AM
Dow Jones News
By Bradley Olson
New York's attorney general alleged in court papers Friday that
Exxon Mobil Corp. may have misled investors about how it accounts
for the impact of climate change on its operations by using
internal estimates that differed from its public statements.
Disclosing for the first time some of the specific evidence his
office has collected in its long-running probe of the oil giant,
the state prosecutor claimed he found documents and other
information showing that Exxon's process for estimating the
potential future costs of greenhouse gas regulations on its
business "may be a sham."
He made the claims in a filing in New York state court seeking
to compel Exxon to release additional documents and produce
witnesses for the probe, which began in 2015. The U.S. Securities
and Exchange Commission is also examining Exxon's accounting
practices and climate change disclosures.
Legal wrangling in the case has also played out in federal
court, where Exxon has alleged that the investigation by New York
Attorney General Eric Schneiderman, a Democrat, is politically
motivated and driven by company antagonists. Mr. Schneiderman has
denied such accusations.
Exxon didn't immediately respond to a request for comment early
Friday morning. It has strongly defended its disclosures and said
its accounting practices are legal.
The airing of certain specific evidence in the probe comes a day
after President Donald Trump said he plans to withdraw from the
Paris climate accord, a 2015 agreement by more than 190 nations to
reduce global carbon dioxide emissions.
In the past year, Exxon has repeatedly voiced its support for
the climate agreement, advocated for a carbon tax, added an
environmental expert to its board and begun testing technology to
reduce emissions at power plants.
On Wednesday, the company suffered a public rebuke on climate
when 62% of its shareholders backed a resolution to pressure the
company to share more information about how climate change and
regulations could affect its business. Exxon had pushed for a no
vote on the proposal, saying additional disclosures were
unnecessary due to reports the company has already produced.
Write to Bradley Olson at Bradley.Olson@wsj.com
(END) Dow Jones Newswires
June 02, 2017 08:23 ET (12:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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