Exxon Mobil issued a report Monday on the risks that climate change policies could pose to the value of its assets and future profitability, according to the Associated Press. The company does not believe governments would impose policies that would severely limit emissions so sharply because oil and gas are so critical to global development and economic growth.
The report was issued the same day the Intergovernmental Panel on Climate Change assessed the science and risks of climate change.
Exxon’s report responded to shareholders and environmental activists that the assets underpinning the value of Exxon and other fossil fuel companies will be worth less as society restricts consumption of fossil fuels to fight climate change.
The report is the first detailed response by a major oil company and acknowledges the need to adopt policies to address climate change. As You Sow, a nonprofit that promotes environmental corporate responsibility, agreed to withdraw their resolution after Exxon agreed to issue a report on climate risks.
They expressed disappointment that the company did not seem prepared to address specific risks to its assets.