Exxon Mobil Corp. has failed to embrace new, climate-conscious directors and is in danger of going the way of Eastman Kodak Co. and Blockbuster Video if it sits out the transition away from fossil fuels, said CalSTRS Chief Investment Officer Christopher Ailman.
The nation’s second biggest public-pension fund supported activist investor Engine No. 1’s successful campaign to replace one-fourth of Exxon’s board earlier this year as part of a larger effort to force an overhaul of the oil giant’s approach to climate change.
Exxon hasn’t “embraced them holistically and recognized that this is shareholders talking to them and wanting a change,” Ailman, the chief steward of investment dollars at the California State Teachers’ Retirement System, said during a Bloomberg Television interview on Friday. “If these companies want to survive and not be Eastman Kodak or Blockbuster Video, darn it, they better get their act together and become energy companies, not just oil and gas firms.”
[Romaine Bostick and Sergio Chapa]