ExxonMobil has lost its bid to block a shareholder resolution over disclosure of its climate change policy, after the US Securities and Exchange Commission (SEC) ruled against it.
The battle began in January when US oil major wrote a letter to the SEC asking for clearance to block a resolution co-filed by the New York State Common Retirement Fund Comptroller Thomas DeNapoli, the Church of England and four other shareholders.
The shareholder resolution, filed in December, called for ExxonMobil to assess how "the worldwide effort to rein in global warming would impact its business".
"This is a major victory for investors who are working to address the risk that global warming presents to our portfolios," said DiNapoli. "The SEC's determination upholds shareholders rights to ask for vital information. Investors need to know if ExxonMobil is taking necessary steps to prepare for a lower carbon future, particularly now, in the wake of the Paris agreement."
Exxon wrote to the SEC on three separate occasions asking for permission to block the resolution. However, DiNapoli and the shareholders also wrote to the SEC rebutting the claims made by the fossil fuel company. The SEC came down in favour of the shareholders.
It determined in its ruling that the proposal was not so inherently "vague or indefinite" that the parties involved would not be able to determine how to implement its measures.
The SEC also concluded that ExxonMobil's public disclosures to date did not favourably compare with the guidelines suggested by the resolution.
Other co-signatories of the resolution include The Regents of the University of California, Vermont Pension Investment Committee, The Brainerd Foundation, and Zevin Asset Management on behalf of Ellen Sarkisian.