Exxon Investors Warned By Activist Fund on Climate Risks: FT
- Oil and gas producer has rejected criticism from Engine No. 1
- Fund concerned over potential value destruction, weak demand
Exxon Mobil’s oil refinery in Baton Rouge.
Photographer: Barry Lewis/In Pictures/Getty Images
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Exxon Mobil Corp. is being warned by activist hedge fund Engine No. 1 it faces an “existential business risk” by pinning its future on fossil fuels as governments move to slash emissions, the Financial Times reported, citing an investor presentation.
Exxon still has no credible plan to protect value in an energy transition, according to an 80-page investor presentation, the newspaper said. The San Francisco-based hedge fund also criticizes the company’s “value destruction” and “refusal to accept that fossil fuel demand may decline.”