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ExxonMobil Climate Change Statements Under Investigation

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ExxonMobil CorporationXOM is being investigated by the New York attorney general on allegations of it misleading the public and its shareholders regarding climate change hazards.

Per the news source, Attorney General Eric Schneiderman issued a subpoena to the company on Wednesday evening to produce its extensive financial records, emails and other documents. A day later, the company announced that it is contemplating on a suitable response for the subpoena.

Per the company spokesman, ExxonMobil has been including information about the business risk of climate change in its quarterly filings, corporate citizenship report and other reports to shareholders for many years.

Other sources told the New York Times, wherein the report was first published, that the attorney general's investigation was initiated a year ago and incorporates company filings since the 1970s.

Last month, several environmental groups approached the U.S. Department of Justice for an investigation on ExxonMobil. The move by the environmentalists follow the reports published in Inside Climate News and the Los Angeles Times, which claimed that the company's own scientists had voiced concerns about global warming decades ago but the executives were sceptical about the observations.

ExxonMobil's vice president of public and government affairs has alleged that the environmental groups have been intentionally selective about the facts. He also said that for nearly four decades the company has worked with governments and universities to develop climate science in a transparent way.

Since 2009, the company's favoured policy for reducing emissions has been its revenue-neutral carbon tax. Notably, it is only since the last five years that the U.S. Securities and Exchange Commission has necessitated companies to reveal climate change-related risks to investors. ExxonMobil has made the appropriate filings in this regard.

While commenting on the ExxonMobil investigation, former SEC lawyer Jacob Frenkel found it "unfortunate that interest groups could fuel political expediency to cause investigations to occur where there should be none."

ExxonMobil currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy sector are Natural Gas Services Group Inc. NGS , Sprague Resources, L.P. SRLP and Seadrill Partners L.P SDLP . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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