Exxon Faces Investor Demand for More Disclosure of Climate Risks (1)

Exxon Mobil Corp. needs to do better at documenting the valuation risk its assets face as the economy moves toward lower-emitting energy sources, according to shareholders including Legal & General Investment Management.

LGIM, together with Christian Brothers Investment Services, said on Monday it’s filed a shareholder resolution that would require the US oil major’s board to disclose the “quantitative impact” of the International Energy Agency’s net zero emissions scenario on its so-called asset retirement obligations. The company needs to address “concerns around costs associated with the decommissioning” of its assets in the event of a rapid energy transition, the investors said.

The ...