From: Douglas Grandt answerthecall@me.

com
Subject: Investors and consumers are becoming more angry
Date: June 1, 2017 at 10:46 AM
To: Suzanne M. McCarron Suzanne.M.McCarron@ExxonMobil.com
Cc: Darren W. Woods Darren.W.Woods@ExxonMobil.com, William (Bill) M. Colton William.M.Colton@ExxonMobil.com,
Susan K. Avery, PhD savery@whoi.edu, Max Schulz max.schulz@exxonmobil.com

Dear Suzanne,
.
Your challenge over the remainder of you career at ExxonMobil is to communicate effectively how the corporation will
deal with debt default, insolvency and bankruptcy and provide a smooth landing for society as your industry declines to
nothing extinction.

The writing is on the wall face reality responsibly and begin to fess up with investors and consumers.
Yesterday may not have been a turning point, but it was a milestone in your inevitable end-game.
Make a plan and bring your global colleagues along we need all on board for this challenge.

As you exercise your fiduciary duty, assure the American public that you will act in our interest, the Public and National
Interest, and not go belly up or abandon the messes you have created around the world.
.
Clean up your own messes and provide the funding to do the job right as your go out of existence.
.
Sincerely yours,
Doug Grandt
.

Exxon Suffers Stinging Defeat On Shareholder Climate Resolution

By Nick Cunningham - May 31, 2017 - Bit.ly/OilPrice31May17

ExxonMobil tried to beat back a move from shareholders to press the company to disclose its vulnerabilities to climate
change and climate regulation, but it failed. At its annual meeting on May 31, shareholders passed a climate resolution
with a vote of 62 percent in favor.
with a vote of 62 percent in favor.
Exxon became the second major oil company in recent weeks to suffer a defeat at the hands of its own shareholders.
Shareholders of Occidental Petroleum passed a climate resolution in early May, an important development in years of
work for climate activists who have tried to push similar measures through, with little success. The Occidental resolution
calls upon the company to review and report on the companys exposure to climate change.

In the past, these moves have been viewed through the lens of corporate social responsibility. That is, shareholders
pressed their companies to clean up their act for the sake of the environment. Or, put more cynically, to at least clean up
their public image by being seen complying with the requests of environmental groups.

But that approach has failed to really move the needle for the bulk of shareholders. More recently, however, things are
starting to change because the financial calculus is changing. The long-term financial health of the industry no longer
looks as rock-solid as it did as recently as just a few years ago.

Over the coming decades, the oil industry will be under assault from multiple fronts. First, governments around the world
will steadily tighten the noose around the industrys neck in order to cut down on carbon emissions, President Trumps
rumored withdrawal from the Paris climate agreement notwithstanding. The industry could see death by a thousand cuts
through taxes, stricter environmental enforcement up and down the industry such as limits on methane emissions or
stricter pipeline safety standards, or an outright ban on certain regions for drilling. In short, public policy could force the
industry to leave oil and gas reserves in the ground.

Second, the industry could face peak oil demand at some point because of the rollout of electric vehicles, a
development that is not immediately imminent but is the subject of growing speculation from even the most conservative
and hard-headed oil companies.

These industry trends have changed the equation for investors. In a potent sign that the industry is suddenly facing
more pressure, BlackRock, the worlds largest asset management company, supported the climate resolution for
Occidental Petroleum, using its 8 percent of the companys shares to tip the scales.
But the passage of a climate resolution by Exxons shareholders is on a different level in terms of importance and
symbolism. Ceres, one of the leading groups on environmental shareholder activism, called it a historical shift in
investor support for climate disclosure.
Exxon was under added pressure because of the investigation several Attorneys General, led by New York, which
allege that the oil major is misleading its shareholders by not disclosing its long-term climate risks. The outcome of the
investigation is uncertain but could be a watershed moment for the industry.
Last year a similar measure only garnered 38 percent of the vote. Exxon reportedly lobbied shareholders directly in the
lead up to this years vote, pressing them to reject the resolution. Exxon maintains that it is already scenario-planning for
different possible futures. "[T]he corporation agrees with the underlying objective - we just have a different view on the
best means to achieve it," Exxon said in a statement. In any event, the company maintains that it is confident it will be
able to produce all of the oil and gas on its books.

But on Wednesday, 62 percent of them passed the resolution. Shareholders also passed separate resolutions calling on
Exxon to describe its plans to reduce methane emissions.
The passage of the resolution by a large margin will force Exxon, whether it wants to or not, to become more
transparent about its financial risks. "Whether it's shareholders or attorneys general or the passage of time, they're
going to have to become honest about the potential for their assets to be stranded," Bob Litterman, chairman of the risk
committee at asset-management firm Kepos Capital, told CNBC. And with major pools of money from asset
management companies like BlackRock shifting in favor of climate disclosure, there is probably no going back.

http://oilprice.com/Energy/Energy-General/Exxon-Suffers-Stinging-Defeat-On-Shareholder-Climate-Resolution.html

###