Exxon Mobil Corporation (NYSE:XOM) is not new to climate change controversy. Over the years, the firm has shown little genuine interest in ensuring a less carbon-intensive future. The company is thus not expected to lessen its stance having seen its share price plummet with a crash in oil process.
Exxon’s Less Carbon-intensive Future Denial
Hundreds of corporations gathered in Paris to affirm their commitment to combating climate change. The need for a low carbon future is no longer a consideration but a reality if global warming is to be brought under control. One thing that became clear at the conference is that Exxon Mobil Corporation (NYSE:XOM) is not prepared for a less carbon-intensive future.
Reducing carbon emissions will always be a direct threat to Exxon Mobil business. That is why the company has always insisted and even encouraged inaction when it comes to climate change. The Paris conference provided a perfect platform for the firm to reiterate why high cost of a low-carbon future would make such actions expensive.
Exxon Mobil Corporation (NYSE:XOM) believes carbon emissions will remain constant even with a decline in the price of carbon. A high cost of a low-carbon future according to the company could be an expensive undertaking.
The company’s stance when it comes to limiting carbon emission does not come as a surprise. Allegations in the recent past have shown how the company funded organizations to discredit the risk of climate change. That is despite its own research team confirming the risks at hand.
Impact of Exxon’s Stance
Exxon Mobil’s move to discredit climate concerns could have a catastrophic impact in the long run. Institutional investor’s individuals and pension funds could end up paying a big a price for the company’s push to discredit the concerns.
New York Attorney General has already lodged investigations on whether the oil giant misrepresented the risks of climate change it is an investigation that could spill over, affecting investors who had bought the stock on misguided sentiments by the company.
Exxon Mobil Corporation (NYSE:XOM) defensive approach to climate change is not going well with many companies whose future is dependent on a low carbon future. It is only a matter of time before its denial approach comes crumbling.
