Exxon in Danger of Being Next Blockbuster, Kodak, CalSTRS CIO Says

Exxon in Danger of Being Next Blockbuster, Kodak, CalSTRS CIO Says


(Bloomberg) — Exxon Mobil Corp. has didn’t embrace new, climate-conscious administrators and is at risk of going the best way of Eastman Kodak Co. and Blockbuster Video if it sits out the transition away from fossil fuels, stated CalSTRS Chief Funding Officer Christopher Ailman.

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The nation’s second greatest public-pension fund supported activist investor Engine No. 1’s profitable marketing campaign to exchange one-fourth of Exxon’s board earlier this 12 months as half of a bigger effort to pressure an overhaul of the oil big’s strategy to local weather change.

Exxon hasn’t “embraced them holistically and acknowledged that that is shareholders speaking to them and wanting a change,” Ailman, the chief steward of funding {dollars} on the California State Academics’ Retirement System, stated throughout a Bloomberg Tv interview on Friday. “If these corporations need to survive and never be Eastman Kodak or Blockbuster Video, darn it, they higher get their act collectively and develop into power corporations, not simply oil and fuel corporations.”

“The board is working constructively for the advantage of all shareholders and targeted on shareholder returns via the power transition, with an emphasis on capital self-discipline and decreasing greenhouse fuel emissions,” Exxon spokesman Casey Norton stated in an e mail.

“As a part of the company plan introduced earlier this 12 months, the board endorsed elevated investments in decrease emissions initiatives, together with these initially targeted on carbon seize and storage, biofuels and hydrogen,” he added. “We actively have interaction with shareholders and supply updates on our enterprise plans, which contemplate their suggestions and enter.”

(Provides Exxon spokesman’s remark in ultimate paragraph)

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