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Investors caution Exxon against ignoring climate

A group of institutional investors and shareholder advocates is calling for the ouster of a member of Exxon Mobil Corp's board of directors, saying the oil giant is putting itself at financial risk by continuing to ignore global climate change.

The dissatisfied investors said on Wednesday they'll again ask Exxon Mobil for specific greenhouse gas reduction goals and larger investments in renewable energy at next Wednesday's shareholder meeting in Dallas -- what's become a common occurrence at the annual get-together.

Their announcement came the same day Exxon Mobil released its 2006 Corporate Citizenship Report, which noted, among other things, the company's greenhouse gas emissions rose 5.4 percent last year from 2005 because of increased oil production in Africa and liquefied natural gas output in the Middle East.

Still, Exxon said it was on target to improve energy efficiency by 10 percent at its global refining operations by 2012.

Specifically, the investor groups plan to call for the removal of director Michael Boskin, who's up for re-election. They're upset because they say Boskin, who chairs Exxon Mobil's public issues committee, has refused to meet personally with them to discuss strategy for dealing with climate change.

Boskin, a Stanford University economics professor who also runs a consulting firm, has served on the board since 1996.

"While its competitors are moving aggressively on climate change, this company ... continues to hide its head in the sand rather than acknowledge the business implications of climate change,"Connecticut State Treasurer Denise Nappier said in a conference call with reporters.

Others opposing Boskin's reappointment include the California State Teacher's Retirement System; shareholder advocate Robert Monks; and the Tri-State Coalition for Responsible Investment.

As principal fiduciary for Connecticut's retirement plans and trust funds, Nappier said her oversight includes a US$302 million investment in Exxon Mobil. Nappier acknowledged a six-hour meeting with Exxon management last July to discuss hers and others' concerns, "but this meeting is not a substitute for a meeting with Michael Boskin and other board members."

Exxon Mobil spokesman Gantt Walton said Boskin arranged the session last summer, and that another was in the works. Walton said Boskin also responded in writing four times to Nappier and others.

"Dr. Boskin has invested substantial time and resources over the past year addressing the concerns," Walton said.
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