Climate Risk

IEEFA Research

IEEFA Investor Memo ExxonMobil (XOM): Company Is an ‘Outlier’ in How It Reports Write-offs on Canadian Oil Sands Assets

Loss Accounting ‘Largely Overlooked by Industry Analysts;’ Full Transparency Could Affect Balance Sheet by $22 Billion

April 17, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published an investor memo questioning whether ExxonMobil has appropriately accounted for its recent write-off of billions of barrels of Canadian oil sands assets. In “ExxonMobil Investment Note,” IEEFA outlines how ExxonMobil remains the exception in the oil industry in its […]

April 17, 2017 Read More →

More News and Commentary

More Climate Risk to Oil Majors in 2 New Lawsuits Reminiscent of Tobacco Litigation

Reuters: California cities San Francisco and Oakland filed separate lawsuits against five oil companies on Wednesday seeking billions of dollars to protect against rising sea levels they blamed on climate change, according to public documents. The lawsuits, filed in state courts in San Francisco and Alameda Counties, alleged Chevron Corp, ConocoPhillips, Exxon Mobil Corp, BP […]

September 21, 2017 Read More →

Growing Public Blowback Against More U.S. Pipeline Projects

SNL: Returning to protest the Federal Energy Regulatory Commission at its first meeting in months, opponents of natural gas pipelines said protests at the agency and a backlash against President Donald Trump helped set the stage for a recent string of victories at the state level and in federal appeals courts. “We are starting to […]

September 21, 2017 Read More →

U.S. Ruling a Likely Landmark in Requiring Federal Agencies to Factor Climate Risk Into Policy Decisions

The Hill: A federal court faulted the Bureau of Land Management (BLM) Friday for what it said were incorrect assumptions about the climate change impact of mining four coal tracts in Wyoming and the use of that coal. The BLM concluded in 2010 that if companies were not allowed to mine the coal on federal […]

September 18, 2017 Read More →

State Street Corp., With $2.6 Trillion in Assets, Calls for Companies to Disclose Climate-Change Risk

E&E: One of the world’s biggest investment firms is pressing companies to think seriously about the risks of climate change and explain how they manage those threats. In a recent research note, a division of State Street Corp. urged companies in sectors exposed to climate change and carbon regulations — like oil and gas firms, […]

August 25, 2017 Read More →

Harvard Study Concludes Exxon Misled Investors on Climate Risk

InsideClimate News: A comprehensive, peer-reviewed academic study of ExxonMobil’s internal deliberations, scientific research and public rhetoric over the decades has confirmed empirically that the oil giant misled the public about what it knew about climate change and the risks posed by fossil fuel emissions, the authors said on Tuesday. The paper confirms the findings of […]

August 23, 2017 Read More →

The Problem for Coal and Nuclear: ‘Capital, With Its Lust for Growth, Continues to Migrate Elsewhere’

Bloomberg Businessweek: U.S. electricity demand has stopped growing over the past decade, partly due to recession but more a reflection of structural changes in the economy and rising efficiency. Its tough to make the economics of  a new nuclear or coal-fired plant work. By the time they are permitted and built, it can be many […]

August 16, 2017 Read More →

Vanguard, Biggest U.S. Mutual Fund, Will Monitor Climate Risk Across Its Holdings

Reuters: Vanguard Group on Monday said it has urged companies to disclose how climate change could affect their business and asset valuations, reflecting how the environment has become a priority for the investment industry. Under pressure from investors, Vanguard and other fund companies have pushed to pass several high-profile shareholder resolutions on climate risk at […]

August 15, 2017 Read More →

Q&A with NY State Comptroller: How Investors Can Manage Climate Risk Now

Environmental-Finance.com: Why is NYS Common Retirement Fund addressing climate risks? Thomas DiNapoli: Addressing climate risk is my fiduciary duty as trustee of the New York State Common Retirement Fund. Climate change is an unprecedented, material risk that affects our portfolio across virtually all asset classes, yet there is little disclosure. We want to know that […]

August 14, 2017 Read More →

IEEFA Update: Something in the Wind

U.S. Nuclear Industry Reconsiders Expansion; Utility Exec Sees Less Risk in Turbine Farm Than Coal; Keystone XL Doesn’t Pencil Out Anymore

It’s de rigueur anymore for energy companies across the board to play up their clean-energy commitments—actual or just advertised—but executives at American Electric Power put some of their money where their mouths were in announcing intentions last week to invest $4.5 billion in the new Wind Catcher farm in Oklahoma. AEP’s logic is rooted in […]

August 4, 2017 Read More →

Oil Majors’ Shareholder Dividends Are at Risk, Exxon’s Included

Wall Street Journal: Major oil companies seem to have moved through the stages of grief about low prices, finally arriving at acceptance. During the latest round of sector earnings delivered in recent days, Royal Dutch Shell ’s RDS.B 0.22% boss Ben van Beurden even said oil could be “lower forever”: BP said Tuesday it is […]

August 2, 2017 Read More →