XOM Exxon Mobil Corp

By Kjetil Malkenes Hovland

OSLO--Norway's sovereign-wealth fund will vote in favor of a shareholder proposal that could force Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) to report on the impact of global climate policies on their business.

"We want to achieve exactly what it says in our expectations document, namely that the companies report better numbers," Norges Bank Investment Management Chief Executive Yngve Slyngstad told reporters at an event in Oslo on Tuesday. The fund backed similar proposals last year for BP PLC (BP.LN) and Royal Dutch Shell PLC (RDSA.LN).

The proposal will be put to a vote at the annual general meetings of Exxon Mobil and Chevron on May 25. If adopted, the proposals would require the companies to report on the long-term impact on their business of possible public climate change policies--up to 2035 for Chevron and up to 2040 for Exxon Mobil.

"The assessment can be incorporated into existing reporting and should analyze the impacts on ExxonMobil's oil and gas reserves and resources under a scenario in which reduction in demand results from carbon restrictions," said the New York State Common Retirement Fund in the proposal.

Norway's $868 billion fund holds a $2.54 billion stake in Exxon and a $1.45 billion holding in Chevron. It tends to flag its voting intentions ahead of key company decisions, partly for transparency reasons. Exxon Mobil and Chevron have advised its shareholders not to support the motion.

Write to Kjetil Malkenes Hovland at kjetilmalkenes.hovland@wsj.com

(END) Dow Jones Newswires

May 03, 2016 07:35 ET (11:35 GMT)

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