ExxonMobil's May 26 annual meeting has turned into a referendum on the global oil industry and climate change.
At issue is a key question for the industry and the global climate: How much of the oil that's been discovered to date but not pumped so far will stay in the ground? Last week the International Energy Agency said the world needs to stop approving new oil and gas projects IMMEDIATELY in order to keep global warming to 1.5 degrees Celsius and avoid catastrophic climate change.
A campaign led by activist investor Engine No. 1 LLC wants to replace one-third of Exxon's board to force the company to actively embrace a transition away from fossil fuels. Engine No. 1 calls the company's current strategy "value destruction" for shareholders. And the campaign has signed up some impressive allies in the fight including Institutional Shareholder Services (ISS) and Glass Lewis & Co., two leading shareholder advisory firms. ISS has gone so far as to write a rebuke of Exxon's climate strategy, saying it had taken only "incremental steps to prepare for the inevitable."
ExxonMobil's by-laws make the May 26 shareholder vote a high-stakes showdown.
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