Exxon Mobil Corporation | Report on Guyana oil spill (economic, human, environmental impact) at Exxon Mobil Corporation

13.30% votes in favour
AGM date
Previous AGM date
Proposal number
Resolution details
Company ticker
Resolution ask
Report on or disclose
ESG theme
  • Environment
  • Social
ESG sub-theme
  • Public health
  • Waste and pollution
Type of vote
Shareholder proposal
Filer type
Company sector
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that the Company issue a report evaluating the economic, human, and environmental impacts of a worst-case oil spill from its operations offshore of Guyana. The report should be prepared at reasonable expense, omit proprietary or privileged information, and clarify the extent of the Company’s cleanup response commitments given the potential for severe impact on Caribbean economies.
Supporting Statement:A “worst-case” should use adverse assumptions such as an extended duration of an uncontrolled release similar to the BP spill, severe weather conditions, increased flow including risks from operating beyond the production thresholds in the EIA, and potential harm to marine ecosystems and public health. 
Whereas clause
WHEREAS: ExxonMobil operates one of the largest oil plays discovered in the past decade, offshore of the South American country Guyana. After discovering oil in 2015, development proceeded rapidly. Production began in 2019, 1 with capacity expected to exceed one million bpd by 2030.2
CEO Darren Woods admitted ExxonMobil is exceeding design capacity for production in two offshore projects in Guyana.3 Production in one project has reached 150,000 bpd, clearly above its listed peak production safety threshold of 120,000 bpd4, raising concerns among observers.5 A former director of Guyana’s environmental protection agency called this “unheard of” and stated ExxonMobil is “without a conscience and ruthlessly taking advantage of an abysmal EPA and weak Government” in Guyana.6 Other safety concerns include gas compressor failures resulting in fines exceeding US$10 million.7
Caribbean countries rely on tourism and fishing industries to support their economies,8 yet ExxonMobil’s Environmental Impact Assessment (EIA) characterizes residual risk to employment as minor and assumes that a large oil spill is unlikely.9
The BP Macondo oil spill released millions of barrels of oil into the Gulf of Mexico over 87 days and created a 57,500 square mile oil slick, exemplifying the risks of deep-water drilling.10 BP stock plummeted 52% over two months.11 Robert Bea, an expert on the Macondo spill, warns ExxonMobil shows “ignorance of risk management fundamentals” in its Guyana operations and mirrors overconfidence preceding the Macondo disaster.12 The most severe spill scenario in ExxonMobil’s EIA accounts for only a 30-day spill.13
President of Esso Exploration and Guyana Limited, Alistair Routledge, has stated “there is no limit” to what ExxonMobil would do in response to an oil spill.14 ExxonMobil’s responsibility and potential liability are of concern to investors.
1 https://corporate.exxonmobil.com/news/newsroom/news-releases/2022/0211_exxonmobil-starts-production-at-guyanas-second-offshore-development.
2 https://newsroom.gy/2022/10/26/with-new-discoveries-oil-production-to-exceed-1-million-barrels-per-day-by-2030/;
3 https://www.fool.com/earnings/call-transcripts/2022/10/28/exxonmobil-xom-q3-2022-earnings-call-transcript/
4 Liza Phase I EIA, p. 38
5 https://www.kaieteurnewsonline.com/2022/11/01/exxonmobil-ruthlessly-taking-advantage-of-slack-govt-abysmal-epa-by-violating-safe-production-limits-dr-adams/
6 https://www.kaieteurnewsonline.com/2022/11/01/exxonmobil-ruthlessly-taking-advantage-of-slack-govt-abysmal-epa-by-violating-safe-production-limits-dr-adams/
7 https://demerarawaves.com/2022/07/26/exxonmobil-racks-up-us10-million-flaring-fine-installs-new-flash-gas-compressor-increases-liza-destinys-daily-output/
8 https://www.fao.org/3/ax904e/ax904e.pdf
9 Payara EIA, Volume I, p. 1,002.
10 https://www.britannica.com/event/Deepwater-Horizon-oil-spill; See also, https://www.epa.gov/enforcement/deepwater-horizon-bp-gulf-mexico-oil-spill#:~:text=4%20million%20barrels%20of%20oil,be%20responsible%20for%20the%20spill.
11 https://money.cnn.com/2010/06/24/news/companies/BP_stock_price/index.htm
12 https://www.theguardian.com/environment/2021/aug/17/exxon-oil-drilling-guyana-disaster-risk
13 Payara EIA, Volume I, p. 839
14 Newsroom Interview, https://www.facebook.com/watch/?v=1758505224495143

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For As international organizations have provided standard setting guidance that the request of the proposal is a best practice regarding the transition to a low carbon economy. Given the unique challenges presented to business and society by the climate emergency, organizations -- particularly in high impact sectors -- should place a global perspective at the heart of its modeling and strategy.
VidaCaixa For
Rothschild & co Asset Management For

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