Investigators want to know what Exxon knew about carbon’s influence on climate change.
U.S. energy companies forced to acknowledge carbon causing problems
Investigators are forcing energy companies, including Exxon Mobil, to finally come clean on what their research proves: man-made climate change is happening.
Exxon Mobil received subpoenas from the New York attorney general’s office on Thursday asking for all of the company’s documents pertaining to climate change. The important documents will cover public statements and investor disclosures. The question is what did Exxon know, and when did it know that carbon dioxide is contributing to climate change.
Ken Cohen, vice president of public and government affairs for Exxon, told a hurried media call Thursday afternoon that the company has acknowledged the reality of climate change in public disclosures since 2007.
The question for investigators is whether the company held back information that someone would want to know before buying stock in the company. Or did they spread information that they knew to be false to improve the company’s stock price. If they did, then they broke the law.
Peabody, a coal company, is also under a similar investigation, and New York Attorney General Eric Schneiderman is likely to send subpoenas to other companies too that funded organizations that created public doubt about climate change.
I don’t think the investigation will lead to a criminal prosecution of Exxon, but the company’s internal research dating back to the 1970s will further quiet those who deny climate change is caused by human activity.
What Exxon does next is what’s important. I’ve pointed out several times that foreign oil and gas companies are actively acknowledging climate change, adapting business plans to address it and engaging policymakers on a carbon tax that is acceptable to all.
American oil companies like Exxon have been charging themselves a carbon tax internally, but in public statements have remained silent on climate change or denied that the government should do anything about it. Exxon CEO Rex Tillerson has been one of the most strident in this regard.
That needs to end now. Unlike tobacco companies, whose mission was to turn their customers into addicts for a product they don’t need, oil and natural gas companies supply something the world will always require: energy. If they evolve, they can continue to deliver shareholder value by selling an important product without destroying the planet.
These businesses can help create a smooth glide path to new and cleaner forms of energy, or they can continue to deny the problem and create a crisis. The better corporate citizens will choose the first option.