Funds fight Exxon board pick for climate stance

New York, 24 May: Large pension and investment funds controlling almost 100 million shares in ExxonMobil are fighting the re-appointment of a board member due to his stance on climate change.

The investors include the pension systems of eight states, two large labour unions, New York City and a dozen others. Together, the funds control $900 billion in assets, according to Boston-based Ceres, an environmental and investment organisation that directs the Investors Network on Climate Change.

The funds oppose the re-appointment to the board of directors of Michael Boskin, who chairs Exxon's public issues committee. They say Boskin has refused five times to meet with shareholders on climate change, and they have sent a letter urging shareholders to vote against Boskin at a shareholder meeting on 30 May.

During a news conference yesterday, Denise Napier, treasurer of the state of Connecticut, said: "ExxonMobil continues to hide its head in the sand, rather than manage the business implications of climate change. … The company's strategy stands in stark contrast to industry peers such as BP, Shell, Chevron and ConocoPhillips." This could present a competitive disadvantage, particularly when carbon regulation emerges in the US, said Napier, whose fund owns $302 million in Exxon shares.

California state controller John Chiang is "very concerned about ExxonMobil's cavalier attitude and sluggish response to this colossal global change. I am especially concerned about future missed opportunities and future lost revenues."

Chiang estimated that the global renewable energy market will grow from $40 billion in 2005 to $150 billion in 2015, while the biofuels market will double to $28 billion in next four years. Meanwhile, oil reserves are shrinking. "Despite these trends – weakening oil supplies and soaring global demand for climate-friendly technologies – this company sits on the sidelines," Chiang commented.

ExxonMobil did not return a telephone call by press time.