(MENAFN- PR Newswire) Resolution From CBIS And LGIM Calls for Better Insight into Energy Giant's Potential Liabilities
CHICAGO, May 25, 2023 /PRNewswire/ -- Christian Brothers Investment Services, Inc. (CBIS), a leading investment management firm and Registered Investment Advisor to Catholic investors around the world, today announced that a shareholder resolution co-led by the company and Legal & General Investment Management (LGIM) will go to a vote at the Exxon Annual General Meeting on May 31, 2023.
The resolution – item
report on asset retirement obligations (aros) under iea nze scenario – requests the Exxon board to fully disclose the quantitative impact of the International Energy Agency (IEA) The Net Zero Emissions by 2050 Scenario (NZE) on all of its asset retirement obligations (AROs).
On May 19, Reuters reported that
proxy advisor Glass Lewis backed the initiative, concluding Exxon could face material financial risks from the net-zero scenario.
Last year, a majority of Exxon's shareholders voted for a CBIS resolution seeking an audited report assessing the financial impact of the IEA NZE assumptions, including future asset retirement obligations. According to John Geissinger, CBIS' Chief Investment Officer, Exxon's disclosures still fail to provide investors sufficient insight into how retirement costs might accelerate and how large those costs might be.
"Investors have demonstrated their concerns about the potential impacts of the energy transition on Exxon, particularly in cases where the company has an obligation to retire an asset but records no costs on the balance sheet today," says Geissinger.
"We're basically just asking the company to provide the total cost of meeting its potential liabilities."
Michael Marks, Head of Investment Stewardship and Responsible Investment Integration, LGIM, added, "By filing this proposal, we are seeking greater clarity into the costs associated with the retirement of Exxon's assets, in the event of an accelerated energy transition. We believe such level of disclosure is imperative for investors to better evaluate long-term risks and economic viability of the business in a carbon constrained future."
Co-filers of Item 12 include British Columbia Investment Management Corporation, Benedictine Sisters of Boerne, Texas, Maryknoll Sisters, School Sisters of Notre Dame Central Pacific Province, and School Sisters of Notre Dame Cooperative Investment Fund.
For an outline of why the resolution would be vital for shareholders and how the company's disclosures do not fulfill the requests set out in the Proposal, see our proxy exempt solicitation .
Christian Brothers Investment Services, Inc. is a Catholic, socially responsible investment management firm and Registered Investment Advisor. A trusted partner to Catholic investors around the world, CBIS offers Catholic Responsible Investments Funds (CRI Funds) and CBIS Global Funds. The funds are managed in accordance with CBIS' Catholic Responsible Investment principles to provide Catholic investors sound financial returns while remaining faithful to the moral and social teachings of the Church. Founded in 1981 by the De La Salle Christian Brothers, CBIS engages third-party institutional investment firms to actively sub-advise its portfolios. As of 3/31/2023, the firm was responsible for the management of $9.8 billion in assets. Headquartered in Chicago, CBIS has offices in Rome and Madrid. For more information, visit cbisonline.com, or call 877-550-2247.
Legal & General Investment Management is one of Europe's largest asset managers and a major global investor, with total assets under management of £1.2 trillion ($1.4tn, €1.4tn, CHF 1.4tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors. For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
Contact : Sarah McClain
Communications Strategy Group