Exxon Must Change Direction, Not Just Appoint New Board Candidates
March 03 2021 - 9:37AM
The Coalition United for a Responsible Exxon (CURE) today issued
the following statement in regards to recent disclosures by
ExxonMobil Corporation (NYSE: XOM) (“Exxon” or the “Company”):
Exxon has demonstrably failed over the last decade to deliver
long-term shareholder value against the wider market and among its
peers. The Company's Board of Directors faces pressure to undertake
a long list of strategic actions: reversing value destruction;
improving investment quality; cutting debt; seizing the opportunity
to lead in the low-carbon energy market; and strengthening
environmental and safety performance.
The recent announcement of new board candidates, including one
with climate and ESG experience (Jeff Ubben), indicates that the
company may intend to change. However, CURE, a shareholder
coalition with 145 members and $2.5 trillion in AUM, will remain
vigilant and focused on the specific changes required to put Exxon
on a stronger path.
CURE acknowledges that, since the engagement of activist
investors over the past six months, Exxon has taken what appears to
be initial steps in the right direction. However, Exxon needs to
commit to a deeper, long-term shift of its capital allocation
strategies to be consistent with the Paris Agreement, streamlining
its upstream and downstream to focus on the highest-returning
assets and pursuing credible pathways towards a 2050 net zero
greenhouse target, which must include renewable energy, clean
hydrogen and carbon capture.
Finally, the Company needs to address its corporate governance
issues, including splitting its CEO and Board chair positions to
foster board independence, aligning executive compensation with
shareholder value creation, ensuring its corporate and trade
association lobbying is aligned with the aims of the Paris
Agreement, and adopting a uniform system of accountancy to meet
basic tests of transparency.
CURE sent a letter to Exxon’s Board last month outlining the
need for change at the Board level and support for multiple
shareholder resolutions. The coalition continues to urge Exxon to
further enhance its Board of Directors to address fiduciary and
climate concerns. The coalition will continue to monitor and assess
the Company’s progress at the Board level and all material changes
to its business, strategy and governance.
The Coalition for a Responsible Exxon (“CURE”)
represents a global spectrum of stakeholders focused on
sustainability and committed to delivering long-term returns that
account for the realities of a changing climate and energy sector.
As of March 1, 2021, CURE brings together over 145 institutional
members, who collectively represent circa $2.5 trillion in
assets.
Media ContactDan Gagnier / Jeffrey
MathewsGagnier
Communications+1-646-569-5897CURExxon@gagnierfc.com
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