Legal & General Investment Management (LGIM) and Christian Brothers Investment Services (CBIS) are co-filing of a shareholder resolution at ExxonMobil’s 2023 AGM, requesting the board to fully disclose the quantitative impact of the International Energy Agency (IEA) Net Zero Emissions (NZE) scenario on all of their asset retirement obligations (AROs).

Asset retirement obligations are an essential part of the energy transition and particularly significant for the oil and gas sector, with many in Exxon’s peer group already disclosing a considerable amount of ARO detail.

The resolution has been filed by a coalition of likeminded investors after years of individual engagement with the ExxonMobil board and relevant decision makers. It calls for further transparency and disclosure from the company, amid investor concerns around costs associated with the decommissioning of Exxon’s assets in the event of an accelerated energy transition.

LGIM states that it believes ExxonMobil’s business model is not aligned with the Paris Goals, and the action is an organic escalation step for its investment stewardship team. It follows the decision taken in 2019 to divest applicable shares in ExxonMobil from the L&G’s Future World Fund Range, around concerns it failed to address risks posed by climate change.

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