December 3, 2021 Read More →

Engine No. 1: ExxonMobil “lost its social license,” battled transition

Reuters:

A failing governance structure propagated by a management without a strategy for the energy transition was behind Engine No. 1’s quest to bring independence to ExxonMobil’s board, Chris James, founder of the U.S. hedge fund told Reuters.

Governments, companies and individuals are taking steps to cut their carbon footprints and enable the energy transition which includes electric vehicles and renewable energy such as wind turbines and solar.

ExxonMobil (XOM.N) has been an outlier in transparency and accountability in its environmental impact, James said in an interview at the Reuters Next Conference.

“This is a company that has lost its social licence … It needs to look at the energy transition as an opportunity to be part of the solution instead of the problem.”

Three of four people with energy transition experience nominated by Engine No. 1 joined ExxonMobil’s board earlier this year.

[Pratima Desai]

More: ExxonMobil’s governance structure fails the energy transition -Engine No. 1

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