A new trend is emerging among the country’s most influential fossil fuel investors: a demand for climate change accountability and progress towards a low-carbon economy. On May 31, 2017, a vote among Exxon Mobil’s shareholders approved a resolution mandating that the company begin offering detailed reports analyzing the impact of compliance with climate change policy on its core business. With this resolution, Exxon’s major shareholders are pushing directly against company leadership, which has historically resisted such disclosure.
With the establishment of a sustainable cap-and-trade program in California as well as the Obama administration’s stance on regulating greenhouse gas emissions, a changed regulatory landscape has emerged, imposing substantially more rigorous reporting requirements on financial institutions that invest in the energy sector either through debt or equity.
Mintz Levin’s Megan Gates and Jeremy Glaser and Enviance Inc.’s Lawrence Goldenhersh and Yann Risz recently published an article in Law 360 describing the GHG-related disclosure and reporting obligations now faced by financial institutions in a new regulatory world. The authors also provide recommendations for cost-effectively conducting the more rigorous risk analysis that is now required. Continue Reading Law360’s “Exxon Opens a New Disclosure Frontier for Energy Finance”