Takes Issue With Report Cited

It is more than disappointing the JofA chose to publish unsubstantiated allegations made against ExxonMobil in a study by Claros Consulting (“ Is Disregard for the Environment Bad Business? ” JofA , Jan.03, page 55), especially without seeking our comment or response. At the very least this does not represent balanced journalism.
Let me set the record straight. Having studied the report closely, we’ve been unable to understand the basis of the author’s assignment of the parameters in the economic model. They appear to be arbitrary and subjective, with a target end result in mind. Furthermore, the conclusions drawn are not based on fact, and the study itself was not peer-reviewed.

Climate change is an important issue to us and one we take very seriously. We completely disagree with the study’s conclusion that our approach to climate change is diminishing shareholder value. On the contrary, ExxonMobil is committed to increasing long-term shareholder value, and we lead the industry in this area. We believe it is in our shareholders’ best interests to develop and supply energy sources that benefit society and minimize environmental impact. ExxonMobil has been an industry leader in bringing many environmental improvements to our business and consumer products. This includes taking a constructive approach to the issue of climate change.

While studies must continue to better understand the potential risks of climate change and possible consequences, we continue to take concrete actions that make a real difference—for example, reducing emissions through the expansion and use of cogeneration facilities as well as conserving energy in our refineries and plants, resulting in 37% more efficiency than 25 years ago. We also are collaborating with auto manufacturers on developing fuel cell technology.

We strongly believe that research and new technology will provide the most effective long-term solution to address the potential risk of climate change. That’s why we are investing substantial dollars in this area, as demonstrated by our recent $100 million commitment to the Stanford University Global Climate and Energy Project (G-CEP). An unprecedented research collaboration between the scientific and engineering community and global companies, G-CEP is dedicated to researching commercially viable technologies that can substantially reduce greenhouse gas emissions.

Our concern for the environment and efficient use of energy is an integral part of our daily business operations, which we think is in the best interest of all our shareholders.

Patrick T. Mulva
Vice-President, Investor Relations, and Secretary
Exxon Mobil Corporation
Irving, Texas