Exxon Mobil Corporation | Additional carbon capture and storage report card at Exxon Mobil Corporation

Status
Filed
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
XOM
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
Resolved:

Shareholders request that, beginning in 2023, ExxonMobil report annually to shareholders, omitting any confidential business information, the net amount of carbon dioxide (CO2) stored underground as a result of the company’s enhanced oil recovery (EOR) activities, including:

1. The total amount (in tons) of captured CO2 stored underground during EOR for the year;
2. The total amount of oil (in barrels) produced through CO2-based EOR for the year; and
3. The difference (in tons) between the CO2 stored underground during EOR and the expected CO2 emissions produced by the burning of the oil produced by EOR, as calculated using EPA greenhouse gas equivalencies (i.e., 0.43 tons of CO2 per barrel of oil, https://www.epa.gov/energy/greenhouse-gases-equivalencies-calculator -calculations-and-references) or other reasonable means.
Supporting statement
This proposal was submitted by Steve Milloy, 12309 Briarbush Lane, Potomac, Maryland 20854, the beneficial owner of 100 shares for at least three years.

Supporting Statement:

ExxonMobil stated on November 6, 2022: ‘ExxonMobil is counting on its long track record in carbon capture for use in enhanced oil recovery to underpin its ambitions for permanent geologic sequestration of greenhouse gases... It’s a well-proven technology that we’ve been doing for many years. We actually account for 40% globally of man-made carbon dioxide that’s being captured.’ https://www.upstreamonline.com/energy-transition/exxonmobil-sees -enhanced-oil-recovery-expertise-as-learning-path-for-climate-action/2-1-1274460

But it’s not at all clear that CO2 capture for EOR results in a net storage of CO2. After all, the produced oil will be burned by consumers and the amount of CO2 emitted thereby may in fact be greater than the amount of CO2 stored. See, e.g., https://junkscience.com/2016/03/no-co2-used-to-produce-oil-does-not-store-co2/

In the event that more CO2 is emitted as a result of EOR than is stored, it would be false and misleading to imply that EOR reduces CO2 in the atmosphere.

Such false and misleading information could make the company subject to government enforcement actions, other lawsuits and reputational harm that would adversely affect shareholder value.

Shareholders have the right to know whether the company is making claims about carbon capture that are not supported by the facts.”

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
CoreCommodity Management, LLC Against
Anima Sgr Against The company’s 2023 Advancing Climate Solutions Progress Report provides year over-year data on CO2 captured for storage. The report also discloses Scope 1 and 2 emissions data. The board cites the Clean Air Task Force which states that, “On a life cycle basis, which includes global oil market impacts, 63 percent of all CO2 stored through EOR is a net reduction in CO2 emissions. Compared to conventional oil, every barrel of CO2-EOR oil emits 37 percent less CO2.”
The IEA and IPCC have also published reports on the viability of CCS as a decarbonization strategy.
The information requested by the proponent is not standard industry practice, and the company’s existing disclosure of its carbon capture and storage efforts and related metrics appears sufficient for investors to be able to determine related risks and how the company is addressing them.

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