(Reuters) – Exxon Mobil Corp, the world’s largest publicly traded oil company, said on Monday that risks related to climate change pose little risk to its oil and gas reserves because the resources will be needed to meet expected growth in energy demand.
Responding to queries from shareholder activists, the company also said it is “confident” that none of its oil and gas reserves will lose value or become “stranded” if governments act to slash carbon emissions.
“We believe producing these assets is essential to meeting growing energy demand worldwide, and in preventing consumers – especially those in the least developed and most vulnerable economies – from themselves becoming stranded in the global pursuit of higher living standards and greater economic opportunity,” Exxon said in a report released in response to call from activist shareholders.
Earlier this month, the Irving, Texas-based company agreed to detail the risks climate change poses to its carbon assets in exchange for the withdrawal of a shareholder proposal on the issue.
The resolution, filed by investors from As You Sow and Arjuna Capital, cited studies suggesting that lower demand or prices for fossil fuels might emerge in coming years as a result of climate change or greater carbon regulation.