ExxonMobil

By James Tapper - The Guardian, May 14, 2023

People investing their pensions in funds that claim green credentials are being warned they may actually be backing the world’s largest oil and gas companies.

Carbon Tracker Initiative said that asset managers have invested $376bn (£295bn) in oil and gas companies, despite publicly pledging to back efforts to limit global temperature rises to 1.5C. The environmental thinktank based in London and New York found that more than 160 funds with a green label held $4.6bn in 15 companies including ExxonMobil, Chevron and TotalEnergies.

It also found that 25 members of the Net Zero Asset Managers initiative had invested in those companies and some had increased their holdings in 2022. NZAM said its international initiative started two years ago and investors needed time to change their strategies.

The warning comes as the UK’s Financial Conduct Authority prepares to publish anti-greenwashing rules that are intended to clean up how investment funds are labelled.

By Sheila Thorne - Fossil Free California, April 15, 2023

CalPERS insists engagement is the most effective way to address climate change. In 2017 it co-founded Climate Action 100+, a coalition of 700 large investors who engage with 167 of the worst carbon-emitting companies in order to promote climate awareness in the company's governance and persuade them to disclose the company's climate risk and reduce emissions to net zero by 2050.

How effective has it been?

An evaluation of the impact of CalPERS climate engagements authored by Dr. Clair Brown, Professor of Economics at U.C. Berkeley, profiles 10 major oil companies with which CalPERS engages. It shows that only five of the ten have set emissions targets of net zero by 2050, and none of them have set short or medium term emission reduction goals. There are no consequences for these failures. A review of the 2022 proxy season along with past votes shows that CalPERS usually continues to support directors regardless of a company's failure to make progress in reducing emissions.

CalPERS' own "Addressing Climate Change Report" ( June 2020) admitted that only 9% of companies in the Climate Action 100+ group had targets in line with the Paris Agreement goals and only 8% had lobbying efforts aligned with necessary climate action.

This report considered one of its "significant impacts of engagement" the fact that Shell announced targets for reductions every 3 to 5 years towards a goal of shrinking its net carbon by about half by 2050 and agreed to include its emissions across its supply and demand chains (Scopes 1,2, and 3). However, one half of net carbon emission by 2050 is hardly something to boast about. Worse, a Financial Times article (May 17, 2020) revealed a disclaimer at the end of Shells's announcement that it will NOT change its strategy or capital deployment plans in line with its announcement until society acts. Thus it is going ahead with a new project in Nigeria to produce 30 million tons of liquefied natural gas a year to meet with what it expects to be doubled demand by 2040. And, according to Carbon Brief, Shell's global energy vision "Sky 1.5" plans for continued use of oil, gas, and coal until the end of the century.

The CalPERS Report also claimed it an accomplishment of engagement that Chevron announced reduction goals for GHG intensity in production. However, Chevron at the same time announced plans to double its production in the Permian Basin over 5 years and expected 900,000 barrels by 2023; thus its overall emissions and especially Scope 3 emissions could only rise.

By Clifford Krauss - New York Times, February 27, 2023

Solar, wind, geothermal, battery and other alternative-energy businesses are adding workers from fossil fuel companies, where employment has fallen.

Emma McConville was thrilled when she landed a job as a geologist at Exxon Mobil in 2017. She was assigned to work on one of the company’s most exciting and lucrative projects, a giant oil field off Guyana.

But after oil prices collapsed during the pandemic, she was laid off on a video call at the end of 2020. “I probably blacked out halfway,” Ms. McConville recalled.

Her shock was short-lived. Just four months later, she landed a job with Fervo, a young Houston company that aims to tap geothermal energy under the Earth’s surface. Today she manages the design of two Fervo projects in Nevada and Utah, and earns more than she did at Exxon.

“Covid allowed me to pivot,” she said. “Covid was an impetus for renewables, not just for me but for many of my colleagues.”

Oil and gas companies laid off roughly 160,000 workers in 2020, and they maintained tight budgets and hired cautiously over the last two years. But many renewable businesses expanded rapidly after the early shock of the pandemic faded, snapping up geologists, engineers and other workers from the likes of Exxon and Chevron. Half of Fervo’s 38 employees come from fossil fuel companies, including BP, Hess and Chesapeake Energy.

Executives and workers in energy hubs in Houston, Dallas and other places say steady streams of people are moving from fossil fuel to renewable energy jobs. It’s hard to track such movements in employment statistics, but the overall numbers suggest such career moves are becoming more common. Oil, gas and coal employment has not recovered to its prepandemic levels. But the number of jobs in renewable energy, including solar, wind, geothermal and battery businesses, is rising.

By Steve Morse - Labor Rise for Climate, Jobs, Justice, and Peace, November 2022

We who work and have worked with our hands, bodies and minds to build, manufacture and repair are committed to our own well-being and that of our families. Our unions have often fought successfully toward this goal, delivering on wages and pensions.

It’s time to face another commitment we owe our families and the next generation: to work for a healthy planet and for justice.

The Climate Crisis is now. We know about the melting glaciers, rising sea levels, droughts, floods, heat waves, fires and hurricanes. Youth, including our own children and grandchildren, are ready to fight for a livable planet, and many are already doing so. Our unions must stand with them.

By Sharon Kelly - DeSmog, June 16, 2022

CalPERS says it needs to hold onto billions in fossil fuel shares in order to push polluters in the right direction – but a new report details a pattern of voting against climate proposals.

Does engaging with oil and gas giants by remaining invested in them – keeping a “seat at the table” – help in the fight against climate change? 

A new report suggests not very much – at least judging by the record of the California Public Employees’ Retirement System (CalPERS).

The report by environmental group Fossil Free California takes the public pension fund to task for its results to date, highlighting its history of pushing “the importance of corporate engagement on climate change” in public statements, while simultaneously voting against climate measures in shareholder meetings.

The report details dozens of votes against climate measures by CalPERS this year — including votes against greenhouse gas reduction targets at Royal Dutch Shell, against reporting and reducing greenhouse gas emissions at BP, and against pushing big banks to get in line with international “net zero by 2050” strategies.

In fact, CalPERS has voted against every climate resolution at major American and Canadian banks so far this year, the report claims.

The report also casts doubt on one of the biggest accomplishments of CalPERS’ engagement strategy – the election of several new members to ExxonMobil’s board of directors last year, nominated by the activist investment firm Engine No. 1. The report faults Engine No. 1’s directors for voting against two recent proposals to set greenhouse gas targets that would account for the pollution caused by the fossil fuels ExxonMobil sells, and to produce a report on low-carbon business plans.

“Despite their best efforts, CalPERS and [California’s other major pension fund] CalSTRS have failed to persuade fossil fuel companies to reduce their greenhouse gas emissions, increase their renewable energy production, or transition from fossil fuels to renewable energy,” the report concludes. “By opposing climate proposals at the very companies they claim to influence, the funds’ shareholder activism is not only ineffective – it’s undermining climate action.” 

California lawmakers are currently considering a bill that would spur these pension funds, which invest retirement funds for state employees – including many, like the state’s firefighters, who are today on the front lines of the climate crisis – to drop their investments in fossil fuel producers.

The fund has an estimated $7.4 billion worth of fossil fuel investments that the bill would require them to shed. In April, its board voted to oppose that law, arguing that it would lose its “seat at the table,” only to be replaced by investors that “may not have the same interest in long-term sustainability as CalPERS”..

CalPERS declined comment on Fossil Free California’s new report.

By staff - Extinction Rebellion, April 8, 2022

Extinction Rebellion UK stands in solidarity with the 100 or more workers at Fawley Oil Refinery who will be taking strike action on 8th April. The strike is in response to the offer of a “pathetic” 2.5 per cent pay offer and a lack of company sick pay, despite Exxon’s profits in 2021 topping an eye-watering £6.75 billion.

Exxon’s business model is not built to benefit the workers who without which, they wouldn’t be able to make record profits. XR UK recognises that Exxon’s business practices not only destroy the planet but oppress and marginalize the workers that enable their activities. They choose to underpay workers and maintain the fossil fuel economy, rather than seeking to facilitate a just transition, which our own Office for Budget Responsibility says is affordable and would create thousands of jobs and save billions of pounds for the UK public.

Solidarity with workers at Fawley Oil Refinery on strike today.@exxonmobil destroy our planet, oppress their workers & prevent a #JustTransition

Today @xr_TradeUnions will visit the picket line to show our support #ClimateJustice = #SocialJustice
https://t.co/EuRhBX0Vgv

— Extinction Rebellion UK (@XRebellionUK) April 8, 2022

By Robert Pollin - American Prospect, April 8, 2022

Even as Vladimir Putin’s barbaric invasion of Ukraine proceeds and concerns over the subsequent high gas prices proliferate, we cannot forget that the climate crisis remains a dire emergency. The latest report of the U.N.’s Intergovernmental Panel on Climate Change (IPCC)—the most authoritative source on climate change research—could not be more explicit in reaching this conclusion. U.N. Secretary General António Guterres described the report as a “file of shame, cataloguing the empty pledges that put us firmly on track towards an unlivable world.” This follows several equally vehement studies in recent years, as well as those from other credible climate researchers.

If we are finally going to start taking the IPCC’s findings seriously, it follows that we must begin advancing far more aggressive climate stabilization solutions than anything that has been undertaken thus far, both within the U.S. and globally. Within the U.S., such measures should include at least putting on the table the idea of nationalizing the U.S. fossil fuel industry.

By Amal Ahmed and Emily Pontecorvo - Grist, January 31, 2022

A union is warning Texas officials not to give Exxon money for carbon capture until it fixes its labor problems.

In Beaumont, Texas, working at one of Exxon Mobil’s plants has long been a way to earn steady wages and support a family in this industrial corner of the Gulf Coast. “We take care of more than just our immediate family,” said Darrell Kyle, the president of the local United Steelworkers chapter, the union representing workers at the plants. “We’re the uncles and aunts,” he said, who help “the struggling nieces or nephews who need a couple hundred dollars to get by, to pay a bill.” 

But for the past nine months, about 600 union employees at Exxon’s refinery and other plants have been struggling to pay their own bills: They have been locked out of their jobs because Exxon has been unable to come to an agreement with the union over a new contract. Kyle said that the company is refusing to honor protections for senior workers that have been in place for decades, while the union is demanding that those protections remain in place. At the end of last April, without a contract finalized and with the threat of a union strike pending, the company began escorting employees out of the complex, the Beaumont Enterprise, a local newspaper, reported. The company stated that the provisions the union was asking for were “items that would significantly increase costs and limit the company’s ability to safely and efficiently operate.”

Some workers, willing to take the deal Exxon was offering, began a campaign to decertify the union, which would end union representation at the plants. The United Steelworkers union believes that Exxon illegally assisted the campaign and has filed complaints with the National Labor Review Board. 

But in addition to using this legal channel to try to protect their union, the Steelworkers tried a different tactic. They started their own campaign to pressure Exxon into a deal — by undermining the company’s push for public money to build a $100 billion carbon capture hub in nearby Houston.

By staff - Friends of the Earth, Bailout Watch, and Oxfam, September 2021

Few letter-soup acronyms in Washington bureaucratese are so aptly pronounced as GILTI and FOGEI, two esoteric provisions in the tax code worth tens of billions of dollars to Big Oil’s multinational majors.

Under the Trump Administration’s radical 2017 tax law, companies that extract oil and gas overseas enjoy special exemptions within the Global Intangible Low-Tax (GILTI) regime covering Foreign Oil and Gas Extraction Income (FOGEI).

It is a fitting accident of nomenclature: FOGEI’s GILTI carveout helps prop up the fossil firms most culpable for the climate crisis — to the tune of $84 billion. An additional international tax loophole enjoyed by Big Oil is worth at least another $1.4 billion, for a grand total of over $86 billion in offshore tax giveaways.

Read the text (PDF).

By Marcy Winograd - Common Dreams, September 7, 2021

As the climate crisis sent thousands fleeing wildfires in Northern California, CalSTRS, the nation's second largest public pension fund, postponed full divestment from fossil fuels for nearly 30 years.

Over objections from CTADivest, organizers within the powerhouse California Teachers Association, the retirement fund's investment committee voted unanimously September 1, 2021,to support a staff recommendation to adopt a net-zero Greenhouse Gas Emissions (GHG) portfolio by 2050 or sooner. This translates into continued "engagement" or investment in Big Oil until the date the Paris Agreement set for countries to reach net-zero carbon emissions.

What is net-zero anyway? It's the point at which GHG's released by humans are "counterbalanced," in CalSTRS' words, by removing GHG's from the atmosphere, though no one is clear on how to remove these earth-warming gases through carbon capture and storage (CCS) or if it's even possible to inject them back into the ground without burning more fuels, poisoning drinking water or triggering earthquakes.

The CalSTRS vote came two months ahead of the next UN climate conference in Scotland, where the COP26 Coalition, made up of 350.org, CODEPNK and others, is expected to turn out thousands of protesters to demand the world's nations run, not walk, toward divestment from fossil fuels, as well as militarism, a key driver of the climate crisis.

The CalSTRS Board vote to continue investing in fossil fuels also came days after the California Democratic Party reaffirmed a 2015 resolution calling on the state's pension funds to divest from fossil fuels.