Stanford to Press Exxon Mobil for Action Now on Global Warming, Despite Oil Company's Role in Global Climate and Energy Project

PALO ALTO, Calif., May 17 /PRNewswire-USNewswire/ -- Concerned Stanford University alumni have succeeded in getting the Stanford Board of Trustee's Advisory Panel on Investment Responsibility (APIR) to support a shareholder resolution pressuring Exxon Mobil to take immediate steps to reduce the giant oil company's contributions to global warming. The move by Stanford is notable since Exxon Mobil routinely cites its support for the Stanford Global Climate and Energy Project (GCEP) as a major reason for why it does not need to take short-term action on global warming.

Kirk Miller (Stanford 1988), the organizer of the alumni campaign, said: "This strong step sends a clear message that Stanford will not allow itself to be used as a fig leaf by Exxon Mobil. The reality here is that Exxon Mobil is exploiting the Stanford name and Stanford's reputation to block shareholder proposals asking ExxonMobil to reduce greenhouse gas emissions. We feel that Stanford's GCEP -- which includes other major funders such as Toyota and GE that are acting now on global warming -- is a genuinely important project focused on substance in fundamental science and engineering. It is far too important to be cheapened by the stalling tactics of the Exxon Mobil legal and PR departments."

As a result of the alumni campaign, Stanford's APIR officials will cast the University's Exxon Mobil proxies next week in favor of Resolution No. 15 (http://www.campaignexxonmobil.org/documents/2007OilandGas.doc), which will be considered at the Exxon Mobil annual meeting on May 30, 2007. The resolution from the Sisters of St. Dominic of Caldwell, New Jersey, and 41 co-filers asks the Exxon Mobil board of directors to set goals for reducing GHG emissions from both its operations and products.

Miller said: "Over the past months there has been a growing call among Stanford alumni to stop donating to the Stanford Fund because of the GCEP situation and ExxonMobil's inaction on climate change. The most recent example of the anger of the Stanford community is that Steve Bing has recalled a $2.5 million donation to Stanford. It is potentially very damaging to Stanford University if more alumni and donors stop funding Stanford because of the association with ExxonMobil and how the oil company is exploiting that connection."

In addition to Miller, the alumni petition to the Stanford APIR was submitted by Sachi Itagaki (1984), Annette Hulse (1989), Cody Taylor (2004) and Daniel Cornejo (2000).

As the preamble of Resolution 15 to be decided by Exxon Mobil shareholders explains: "As of fall 2005, ExxonMobil had contributed a mere $8.9 million to the Stanford Global Climate and Energy Project, its most touted climate investment. This represents .003 percent of the 2006 commitment made by Virgin's Richard Branson ($3 billion) and .0008 percent of ExxonMobil's 3rd Q 2006 earnings. The Company's oil and gas investments averaged $50 million per day in 2005 alone. ExxonMobil has set an initial goal to improve energy efficiency by 10 percent by 2012 across its U.S. refining operations, but this goal does not address GHG emissions, nor does it cover overall operations or products."

In their call for APIR action, the Stanford alumni noted: "It is our position that ExxonMobil actions (and their inaction) relating to global climate change represent a serious roadblock to significant progress on climate change. As the world's largest private oil company, ExxonMobil has the power to direct the energy industry and policy makers toward viable solutions to climate change. The global climate change problem is extremely complex and will be very difficult to solve, requiring efforts on the local, state, national and international levels. Immediate actions by large oil and gas companies are an important and necessary step to help solve the climate change problem."

The alumni continued: "Exxon Mobil's main international competitors (e.g. BP and Shell) have already made significant steps to reduce greenhouse gas emissions and invest in renewable energy technologies ... While BP and Shell are actively reducing their emissions and investing in renewable energy, ExxonMobil is sending its lawyers to the SEC to block shareholder requests for action on climate change and citing its investment in GCEP as reasons for inaction. The contrast could not be clearer."

BACKGROUND

GCEP was launched in December 2002 with support from four international companies, General Electric, ExxonMobil, Schlumberger, and Toyota, providing a total of $225 million over a 10-year period. The project conducts fundamental research on technologies that will permit the development of global energy systems with significantly lower greenhouse gas emissions.

Stanford University has been voting proxies that support endorsement and reporting on compliance with environmental standards and has also engaged companies on global climate change since 1998. In 1971, the Stanford Board of Trustees became the first governing body of a major academic institution to adopt a statement on investment responsibility. The trustees created the Commission on Investment Responsibility (CIR), later renamed the Advisory Panel on Investment Responsibility. The trustee's own Special Committee on Investment Responsibility (SCIR) was created in 1977 in response to increased debate on campus and nationwide regarding South African investments. As a result of the Exxon Valdez spill in 1989, the APIR of the Stanford Board of Trustees began addressing environmental issues.