NEW YORK CITY///May 21, 2009///U.S. mutual fund shareholders who are concerned that ExxonMobil has not done enough to address climate change, renewable energy and board independence issues have sent almost 500 messages telling their mutual funds to support shareholder resolutions on all of those fronts.
Investors can send a message about ExxonMobil to America’s 25 largest mutual fund families (by distributors) by going to http://www.ExxonMutualFundShares.org. Most mutual funds are voting their shares now ahead of the ExxonMobil annual meeting in Irving, Texas on May 27, 2009.
Resolution filers Robert A.G. Monks and Neva Rockefeller Goodwin said: “We believe that mutual funds hold the key to boosting the level of support for these climate, renewable energy and independent chair resolutions at ExxonMobil. We also believe that most Americans understand the importance of ExxonMobil addressing all of these critical issues in a more immediate, responsible and open fashion. That is why we are urging investors to let their mutual funds know how they want them to vote their shares on these proxy questions at ExxonMobil. We intend to watch how these mutual funds respond to this feedback from their customers and then let mutual fund investors know whether their input was heeded or ignored.”
The new www.ExxonMutualFundShares.org Web site is a joint project of proponents of four ExxonMobil shareholder resolutions:
Proxy item #6 requiring the creation of an independent board chair (http://www.ExxonAction.com) sponsored by shareholder advocate Robert AG Monks and Ram Trust Services. Unlike the nonbinding (“precatory”) resolutions submitted in previous years in support of separate ExxonMobil’s CEO and board chair functions, this year’s resolution is a binding by-law change proposal. Explaining the shift in approaches, Monks said: “This is a question, pure and simple: Do the owners of Exxon want a ‘real’ -- in the sense of commitment and capacity to perform statutory duties -- board of directors? Separating the CEO and Chairman of the Board positions will enable the CEO to focus on delivering positive results to shareholders while empowering the Chairman and the Board to objectively analyze the long term challenges and opportunities facing the Company. This will strengthen the long-term prospects of ExxonMobil.”
Proxy item #11 favoring the setting of greenhouse gas emissions goals at ExxonMobil (http://www.onlineethicalinvestor.org/eidb/wc.dll?eidbproc~reso~7963) from lead filer Sister Patricia Daly, OP, Caldwell Dominican Sisters. Sister Daly said: “Proponents believe ExxonMobil’s board never has sufficiently responded to shareholders in their request for an action plan and articulated goals for reducing GHG emissions from the Company’s products and operations. We believe ExxonMobil has done a poor job of articulating a cohesive business plan for dealing with climate risk and opportunity -- especially regarding its products -- or offered robust responses to the financial, regulatory, and technology impacts of the climate crisis. By contrast, BP, Royal Dutch Shell, ConocoPhillips, and Chevron have made newsworthy investments in renewables and low-carbon technologies to reduce emissions, and/or have begun integrating the cost of carbon into planning and investments. ConocoPhillips, BP America, and Shell have further endorsed calls for the U.S. to reduce carbon emissions by 60-80 percent by 2050.”
Proxy item #12 asking for a report on the company’s assumptions about climate change and energy costs for developing countries and poor regions within developed companies (http://www.thehastingsgroup.com/XOMFunds/NRGproxy.pdf), which was filed by Neva Rockefeller Goodwin. In outlining the rationale for the resolution, Dr. Goodwin said: “Members of the Rockefeller family continue to support the ExxonMobil resolutions that they co-filed last year. However this year they have decided to focus their efforts on co-filing Proxy Item #12, which I filed last year and again this year. This decision was made because of the light this resolution sheds on Exxon’s inadequate anticipation of changing energy markets. Exxon emphasizes that fossil fuels have played a large role in enabling economic development, which is still needed by the world’s poor, and they project that their major clients for the next 20 years will be developing countries. However, that outlook wrongly depends entirely on growth in demand for oil-based products from developing countries, and it ignores strong scientific evidence, government policy and market forces that are shaping a very different energy future – one in which the important requirement for energy for development will increasingly be met by non-carbon sources. We seek support for resolution 12 in the hope that it will encourage the Board to gather information that will motivate more proactive policies, reducing reputational risks and other threats to the business, and increasing the likelihood of ExxonMobil’s continued success in a rapidly changing energy environment.” Additional information about this resolution is available online (http://www.exxonmutualfundshares.org/resolution12.pdf).
Proxy item #13 urging a greater emphasis on renewable energy (http://www.onlineethicalinvestor.org/eidb/wc.dll?eidbproc~reso~8482) filed by Stephen Viederman. He explained the resolution as follows: “Exxon is very profitable now, but ill-prepared for sustaining value in the future. The ‘named executive officers’ at XOM have career service ranging from 32 to 42 years. The other executive officers have career service ranging from 27 to over 36 years. Energy challenges for the future, ExxonMobil acknowledges, have lead times of decades, not years. But ExxonMobil has the entrenched mindset of an oil and gas company. Unlike its major competitors, Exxon has neither a policy nor plan of action, nor significant investment in renewable energy, which will play a larger role in the future than XOM’s scenarios project.”
The full text of the customizable message on the www.ExxonMutualFundShares.org Web site reads as follows:
“I am an investor in one or more of your mutual funds. Since I have entrusted you to buy and sell the shares in which I invest indirectly, I am taking this opportunity to encourage you to vote in support of four resolutions now before you at ExxonMobil.
Specifically, I urge you to vote FOR proxy items #6, #11, #12 and #13. All four of these resolutions would put pressure on ExxonMobil to become much more proactive in dealing with climate change, renewable energy and board independence. As the world’s largest publicly traded oil company, ExxonMobil could be setting a shining example on all of these fronts, instead of bringing up the rear as it does today.
As a mutual fund shareholder, I am concerned about both the future of the environment and the future of my retirement nest egg. As long as you invest in ExxonMobil as a major long-term position for millions of retirees (including me), I want to make sure that the company takes the steps today to ensure that it will be around tomorrow when I will need it most.
As you know, we have seen all too much evidence in recent months about how even the biggest, the most powerful and the best-known banking, insurance, auto and securities firm can be brought to their knees by failing to take the steps needed to address management weaknesses and risks that they mistakenly thought that they could ignore. I don’t want to see my stake in ExxonMobil suffer the same fate some day. As such, one of the best things you can do right now to protect the retirement income security of investors is to vote in favor of proxy items #6, #11, #12 and #13 at ExxonMobil.
In addition to calling on you to take this action, I am asking that you keep me informed about what action you did take on all four these four resolutions, as well as your rationale for doing so. Thank you!”
CONTACT: Patrick Mitchell, (703) 276-3266 or pmitchell@hastingsgroup.com.
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