Oil giant bows to shareholder pressure for second time in a month
ExxonMobil has agreed to release more information on its hydraulic fracturing – or fracking – practices, bowing to shareholder pressure for the second time in a month.
After a campaign led by As You Sow, with the New York City Pension Funds – which holds $1 bn in Exxon shares – and others, Exxon agreed to outline its practices for managing environmental and community risks associated with fracking, according to a press release issued by the shareholders.
‘ExxonMobil is responding to shareowners on issues that are critical to its long-term sustainability,’ says New York City comptroller Scott Stringer in the release. ‘We have seen the significant risks that come from hydraulic fracturing activities. Corporate transparency in this area is truly necessary for assessing risk and ensuring all stakeholders have the information they need to make informed decisions.’
The agreement follows a five-year shareholder campaign for greater transparency. A shareholder proxy proposal last year demanding greater disclosure about Exxon’s fracking and shale gas operations won 30.2 percent of the vote. The shareholders withdrew a proposal meant for this year’s shareholder meeting after reaching the disclosure agreement.
As part of the agreement, Exxon has agreed to disclose how it assesses and manages risk for 26 management practices in the areas of chemicals, water and waste management, air emissions, community impacts and management and accountability.
As You Sow says Exxon was one of the lowest-ranking companies in a 2013 global report on fracking. The company’s disclosure was ranked as ‘adequate’ in just two of the 32 indicators used to determine a company’s degree of fracking disclosure.
Last month, Exxon also agreed to shareholder demands that it provide more information on oil reserves that may have to be kept underground if international authorities reach an agreement to limit the impact of climate change.
