Exxon Mobil Corporation | Report on methane measurement at Exxon Mobil Corporation

Status
36.40% votes in favour
AGM date
Previous AGM date
Proposal number
8
Resolution details
Company ticker
XOM
Lead filer
Sisters of St. Francis Charitable Trust (Dubuque)
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Methane
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
Shareholders request that ExxonMobil issue a report analyzing the reliability of its methane emission disclosures. The report should:
• Be made public, omit proprietary information, and be prepared expeditiously at reasonable cost; and
• Summarize the outcome of efforts to directly measure methane emissions, using recognized frameworks such as OGMP; and whether those outcomes suggest a need to alter the Company’s actions to achieve its climate targets.
Whereas clause
Methane is at least 80 times more potent as a greenhouse gas than carbon dioxide over a 20-year period. The Environmental Protection Agency (EPA) reports that 32% of U.S. methane emissions from human activities comes from natural gas and petroleum systems.1 According to the United Nations Environment Programme (UNEP), cutting methane is the strongest lever we have to slow climate change over the next 25 years. 2
The EPA methodology used to estimate methane emissions underestimates and fails to capture many major leaks, which waste a valuable product worth over $2 billion per year. Studies have found actual emissions to be 50 to 100% higher than reported emissions.3 In certain basins, emissions are more than 10 times industry-disclosed figures.2 Therefore, oil and gas industry Scope 1 emissions may be significantly higher than currently reported. Methane emissions estimates improve when direct measurement methodologies are used, when emissions are identified by source type and at a site or facility level, and then reconciled, as shown by the Oil and Gas Methane Partnership 2.0 (OGMP).4

The U.S. joined the Global Methane Pledge in 2021, committing to use best available inventory methodologies to quantify methane emissions. The same year, investors managing more than $6 trillion supported strong federal methane regulations. Companies responsible for approximately 30% of global natural gas production, including bp, Shell, TotalEnergies, Occidental, and ConocoPhillips, have joined the OGMP, a multi-stakeholder initiative launched by UNEP committed to improving methane data quality and consistency.5 Companies that do not adequately manage methane emissions risk their reputation and license to operate. ExxonMobil has committed to reduce methane emissions in alignment with the Global Methane Pledge by deploying best practices and advanced technologies, including satellite, aerial, and ground-sensor networks. 6 The Company supports strong measurement, reporting and verification standards. It participates in various international methane coalitions and contributes to research to improve methane quantification. 7 However, it has not taken the critical step to reduce investor concerns by reporting on its methane emission measurements.
Supporting statement
At management’s discretion, we recommend that the report:
• Describe the types of source- and site-level measurements used;
• Describe any material difference between its own or third-party direct measurement results and Company’s reported methane emissions;
• Describe plans to validate emissions estimates and disclosure through third-party audit or evaluation; and
• Describe plans to improve emission estimates over time, consistent with frameworks such as OGMP.

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
Anima SgrForAs given recent research that shows traditional methods for measuring methane emissions to be inaccurate, increased regulatory pressure from the EPA, and recent potential controversies stemming from the company's methane emissions, shareholders would benefit from an assessment of the reliability of the company's methane emissions disclosures. Ensuring the accuracy of the board's disclosure will permit the company and shareholders alike to appropriately assess risks related to methane emissions.
VidaCaixaFor
Rothschild & co Asset ManagementFor

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.