Shareholders press ExxonMobil, Chevron on climate

OREANDA-NEWS. June 01, 2015. ExxonMobil and Chevron's shareholders today rejected separate proposals to appoint environmental experts to their boards of directors.

"We recognize that meeting the world's growing need for energy while protecting the environment is one of society's grand challenges," ExxonMobil chief executive Rex Tillerson said at the company's annual shareholder meeting in Dallas today. "Discussion is also needed on how competent are the models on predicting what the future implications on climate will be."

Arguing for a climate expert on board, shareholder Michael Crosby submitted a proposal for ExxonMobil on grounds that it is "critical to companies' success in the energy industry because of significant environmental issues associated with the operations."

An "authoritative figure" would allow the board to effectively address the environmental issues and risks inherent in its present business model regarding climate change, the proposal said.

ExxonMobil's board recommended voting against this proposal because its current guideline for selecting non-employee directors already require someone with a breath of experience. "We believe that this process has resulted in a board with a broad range of qualifications and expertise, including environmental/climate experience," it said.

The diverse background of the board allows it to address climate-related issues and to provide "meaningful guidance for the company in this area."

Chevron's board responded to a similar proposal saying that its current board "possesses significant environmental experience." Chevron also said the board already "currently includes a number of independent directors with significant environmental experience."

"Your board does not believe that setting aside a board seat for such a special-purpose director is a good corporate governance practice," Chevron's response said. "Boards make decisions as a group, with collective responsibility."

But Chevron's shareholders voted in favor of a "proxy access" proposal that gives large investors powers to nominate a director to the board. Viewed as a success for corporate governance activists, the proposal may allow investors closer scrutiny of subjects including climate change.