Adopt Renewable Energy Policy
2009 – Exxon Mobil Corporation
RESOLVED: That ExxonMobil’s Board adopt a policy for renewable energy research, development and sourcing, reporting on its progress to investors in 2010.
In May 2008 the Board recommended voting against this resolution: “The Corporation is investing at record levels in its traditional oil and gas development projects and is actively involved in research on alternative energy technologies”, concluding: “This proposal is unwarranted.” (Emphasis added)
Xom’s Chair /CEO, Rex Tillerson acknowledges “it is increasingly clear that climate change poses risks to society and ecosystems that are serious enough to warrant action—by individuals, by businesses, and by governments.” (Emphasis added) Warranted for some but not, apparently, others
The activities noted in Tomorrow’s Energy (which EXXON cited in January in its unsuccessful attempt to convince the SEC that it had already implemented the resolution) are individual research projects on alternative energy rather than renewable energy technologies, and certainly do not constitute a policy as requested.
No policy statement on renewable energy research, renewable energy development, or renewable energy sourcing, can be found on XOM’s website.
XOM projects there will be growing demand for oil and gas until 2030.
The International Energy Agency (World Energy Outlook 2008) reflects “We can be certain that the energy world will look a lot different in 2030 than it does today,” citing political and regulatory changes, projected higher prices for oil and gas, and the emergence of low-carbon energy technologies.
They observe, “It is within the power of all governments, … acting alone or together, to steer the world towards cleaner, cleverer and more competitive energy system. Time is running out and the time to act is now.” (Emphasis added).
And certainly there will be game-changing shifts on energy policy in the U.S. and the world.
Our company is spending $100 million on advertising to soften its image on these issues.
The $10 million per year that XOM grants to Stanford for long-term research, only a small portion of which deals with renewables, pales in comparison to this advertising budget, and is a rounding error compared to XOM’s total R&D budget.
Our company has the research and development capacity to create “game-changing renewable energy technologies” (Tillerson) for the long-term.
What it lacks is the will, we believe.
Caught in the narrow mindset and culture of an oil and gas company, XOM is not prepared to make the transition from “taking on the world’s toughest energy [read oil and gas] challenges” to “taking on the world’s toughest sustainable energy system challenges.”
The World Energy Council makes clear “it is a myth that the task of meeting the world’s energy needs while addressing climate change is simply too expensive and too daunting.”
Shell, BP, Chevron and others have decided that clean, renewable energy has a role to play in a different energy future.
We, as long-term investors, request a renewable energy policy to guide our company in the decades ahead.
This resolution, presented at XOM’s 2008 AGM, received a 27.5 % vote in favor.