Coalition United for a Responsible Exxon (CURE) – Representing Stakeholders with over $2.2 Trillion in Assets – Calls for New Leadership and Strategy at Exxon

Tuesday, 02. February 2021 23:10

NEW YORK, Feb. 02, 2021 (GLOBE NEWSWIRE) -- The Coalition United for a Responsible Exxon (“CURE”) was launched today with an open letter in support of meaningful change at ExxonMobil Corporation (NYSE: XOM) (“Exxon” or the “Company”). CURE represents a broad a spectrum of stakeholders focused on sustainability who are committed to delivering long-term returns that account for the realities of a changing energy sector. As of today, CURE’s over 135 members collectively represent over $2.2 trillion in assets. More details on the coalition can be found at CURExxon.org.

In the letter, CURE raises urgent concerns about Exxon’s current direction, which is premised on outdated assumptions about high oil prices, demand, and margins that are incompatible with the reality of climate change and the inevitable transition to renewable energy sources. Once the most innovative leader in the industry and a pillar of the Dow Jones, Exxon today finds itself lagging behind other oil majors that have adapted their strategies to lead the global energy transition. The CURE letter comes after Exxon reported historic financial losses in 2020, marked by a $19 billion write-down of assets and shrinking operational cash flows, a sign of a company in disarray.

The coalition urgently demands change at Exxon, beginning with the Board, and a new commitment to a financially, competitively, and environmentally sustainable future for the Company, its shareholders, and all stakeholders.

Under its current strategy, Exxon continues to strand assets by making massive capital investments in upstream projects that destroy shareholder value. The Company rationalizes these investment decisions through unrealistic expectations of future oil and gas prices and demand. Exxon’s poor decision-making has led to the highest debt levels in the Company’s history, with the worst operational net-debt-to-cash ratio among its peers. Exxon’s operational inefficiencies are also exacting a toll on profitability.

CURE argues that structural change is needed at Exxon, rather than the patchwork of minor adjustments put forth on its February 2 earnings call, and that these piecemeal, cosmetic half-steps to stave off real change are too little, too late. Further, the coalition believes that shareholders should not find the Company’s proposal to potentially invest $600 million per year on carbon capture and sequestration technology credible, after it “delayed indefinitely” its leading carbon-capture project just ten months ago.

Exxon’s current myopic and entrenched Board and leadership team are not equipped to undertake the change necessary to turn around the Company’s decline over the last decade. Nearly every senior leader has spent his or her entire career inside of Exxon, and until February 2, the Company did not have any independent directors with energy industry experience on its Board. Further, Exxon lags its peers in transparency and has consistently resisted efforts by shareholders for greater disclosure, especially related to the sustainability of its operations. This only makes it more difficult for shareholders to know how the business is performing on metrics that matter to the Company’s owners.

Finally, Exxon’s record of emissions and safety failures is far worse than other energy majors – a gap that has grown in recent years. There are currently over 20 lawsuits in process alleging that the Company deliberately promoted a misinformation campaign calling climate change a hoax.

Given the substantial risk to Exxon’s dividend and competitive viability, the members of CURE have come together to advocate for refreshed leadership and a new vision for the future at Exxon.

The text of the letter follows:

Coalition United for a Responsible Exxon (CURE)

February 2, 2021

Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, TX 75039

Dear ExxonMobil Board of Directors:

The undersigned are a group of ExxonMobil Corporation (“Exxon” or the “Company”) stakeholders, including Seattle City Employees’ Retirement System, Dana Investment Advisors, and Members of the Interfaith Center on Corporate Responsibility, that have been disappointed with Exxon’s lack of financial performance, poor capital allocation decisions and failure to capitalize on business opportunity of the clean energy transition. Together, we are the Coalition United for a Responsible Exxon (CURE) and represent 138 organizations that collectively manage more than $2.27 trillion in assets.

For many years, Exxon has ignored both the desires of its key stakeholders and the financial risks and opportunities of the transition happening in energy markets toward cleaner, more sustainable forms of energy. This is no longer tenable for current shareholders, all stakeholders, the financial future of the Company, and future generations. Exxon has lost $250 billion in market value since 2014, was removed from the Dow Jones where it had been a "blue chip" since 1928, and has lost 25% of its market-cap over the past 12 months. Without a change in leadership, the Company is positioned for much greater losses in the future.

As key stakeholders in Exxon, we urge the Company to embrace change with the ingenuity and rigorous analysis for which it was once known, ensuring that Exxon will not only survive, but will lead through this inevitable transition. In years past, Exxon led the world and was the most valuable company on the planet. But no longer.

Change is required.

We are pleased to see three shareholders – D.E. Shaw, the California State Teachers Retirement System (CalSTRS), and Engine No. 1 – urge the Company to reform its priorities and operating goals, with an eye toward much-improved financial performance, responsible growth in the clean energy transition, and improved environmental stewardship. We hope the Company will address these concerns substantively and engage with those owners, CURE, and all stakeholders, with an earnest desire to improve Exxon for the benefit of all.

We intend to offer our views, both publicly and privately, to drive Exxon to become a responsible energy company – one that all of its stakeholders, as well as our children and future generations, can be both proud of and benefit from. We would be pleased to meet to discuss the steps we believe Exxon should take to leapfrog its peers and move to a sustainable business model with long-term competitive advantages. Exxon should again lead the world.

Sincerely,

Coalition United for a Responsible Exxon (CURE)

Coalition Members

Aargauische Pensionskasse (APK)

Adasina Social Capital

Adrian Dominican Sisters, Portfolio Advisory Board

Align Impact

Ario Advisory

Arjuna Capital

As You Sow

ATISA Personalvorsorgestiftung der Tschümperlin-Unternehmungen

Bernische Lehrerversicherungskasse

Bernische Pensionskasse (BPK)

Bon Secours Mercy Health

Broad Reach Fund

Caisse Cantonale d'Assurance Populaire (CCAP)

Caisse de pension du Comité international de la Croix-Rouge

Caisse de pension Hewlett-Packard Plus

Caisse de pensions de l'Etat de Vaud (CPEV)

Caisse de pensions du personnel communal de Lausanne (CPCL)

Caisse de pensions ECA-RP

Caisse de prév. des Fonctionnaires de Police & des Etablissements Pénitentiaires

Caisse de Prévoyance de l'Etat de Genève CPEG

Caisse de Prévoyance des Interprètes de Conférence (CPIC)

Caisse de prévoyance du personnel communal de la ville de Fribourg

Caisse de prévoyance du personnel de l'Etat de Fribourg (CPPEF)

Caisse de prévoyance du personnel de l'Etat du Valais (CPVAL)

Caisse intercommunale de pensions (CIP)

Caisse paritaire de prévoyance de l'industrie et de la construction (CPPIC)

CAP Prévoyance

CERN Pension Fund

Caisse Inter-Entreprises de Prévoyance Professionnelle (CIEPP)

Committee on Mission Responsibility Through Investment of the Presbyterian Church U.S.A.

CommonSpirit Health

Confluence Philanthropy

Congregation of St. Joseph

CoreCommodity Management, LLC

Dana Investment Advisors

Daughters of Charity, Province of St. Louise

Dwight Hall Socially Responsible Investment Fund at Yale

Etablissement Cantonal d'Assurance (ECA VAUD)

Ethos Foundation, Switzerland

Figure 8 Investment Strategies

Impact Capital Strategies

Impact Investors

Individual

Interfaith Center on Corporate Responsibility

JLens Investor Network

Jonas Philanthropies

JSA Sustainable Wealth Management

Luzerner Pensionskasse

Majority Action

Manaaki

Merck Family Fund

Mercy Investment Services, Inc.

Miller/Howard Investments, Inc.

Nathan Cummings Foundation

Natural Investments

Nest Sammelstiftung

Newground Social Investment

North Berkeley Wealth Management

Fondation de la métallurgie vaudoise du bâtiment (FMVB)

Fondation de prévoyance Artes & Comoedia

Fondation de prévoyance des Paroisses et Institutions Catholiques (FPPIC)
Fondation de prévoyance du Groupe BNP PARIBAS en Suisse

Fondation Interprofessionnelle Sanitaire de Prévoyance (FISP)

Fondation Leenaards

Fondation Patrimonia

Fonds de Prévoyance de CA Indosuez (Suisse) SA

Fonds interprofessionnel de prévoyance (FIP)

Franciscan Sisters of Allegany NY

Fulcrum Asset Management

Gebäudeversicherung Luzern

Gebäudeversicherung St. Gallen

Good Capital Investment Group

Green America

GreenFaith

Hexavest

Pensionskasse  Römisch-katholische Landeskirche des Kantons Luzern

Pensionskasse AR

Pensionskasse Bank CIC (Schweiz)

Pensionskasse Basel-Stadt

Pensionskasse Bühler AG Uzwil

Pensionskasse Caritas

Pensionskasse der Basler Kantonalbank

Pensionskasse der Stadt Winterthur

Pensionskasse Pro Infirmis

Pensionskasse Schaffhausen

Pensionskasse SRG SSR

Pensionskasse Stadt Luzern

Pensionskasse Stadt St. Gallen

Pensionskasse Unia

Personalvorsorgekasse der Stadt Bern

Prévoyance Santé Valais (PRESV)

prévoyance.ne

Profelia Fondation de prévoyance

Prosperita Stiftung für die berufliche Vorsorge

Providence St. Joseph Health

Proxy Impact

Region VI Coalition for Responsible Investment

Rentes Genevoises

RP - Fonds institutionnel

School Sisters of Notre Dame Cooperative Investment Fund

Seattle City Employees’ Retirement System

Secunda Sammelstiftung

Seventh Generation Interfaith Inc.

Sierra Club Foundation

Signet Strategic Wealth Management, Inc.

Sisters of Bon Secours USA

Sisters of Mary Reparatrix

Sisters of St. Francis o Philadelphia

Sisters of St. Francis-Dubuque

Sisters of the Presentation of the BVM of Aberdeen SD

Social Justice Committee, UU Congregation at Shelter Rock

Socially Responsible Investment Coalition

SRI Investing LLC

St. Galler Pensionskasse

Stiftung Abendrot

SVA Zürich

Terre des hommes Schweiz

The Prentice Foundation

THE VELUX FOUNDATIONS

Unfallversicherungskasse des Basler Staatspersonals

Université de Genève (UNIGE)

US Trust

ValuesAdvisor

Verein Barmherzige Brüder von Maria-Hilf (Schweiz)

Vorsorge SERTO

Wallace Global Fund

About the Coalition United for a Responsible Exxon

The Coalition United for a Responsible Exxon (“CURE”) represents a global spectrum of stakeholders focused on sustainability and committed to delivering long-term returns that account for the realities of a changing climate and energy sector. As of January 26, 2021, CURE brings together over 135 institutional members, who collectively represent more than $2 trillion in assets. For more information, please visit CURExxon.org.

Media Contact

Dan Gagnier / Jeffrey Mathews
Gagnier Communications
+1-646-569-5897
CURExxon@gagnierfc.com

 


Related Links: 
Author:
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.