Statement on ExxonMobil’s loss of $22 billion in 2020
WEST SACRAMENTO, Calif. (February 3, 2021) – ExxonMobil’s reported 2020 loss of $22 billion demonstrates the continued erosion of shareholder value and that incremental changes are not enough to restore investor confidence and position the company for the global energy transition.
Piecemeal investments in carbon capture do not demonstrate a long-term energy transition strategy. ExxonMobil’s plan to invest $3 billion over five years on carbon capture and lower-emission energy technologies is inadequate, as it represents a small percentage of ExxonMobil’s annual capital expenditures. We are concerned that this minor investment is not part of a bigger and more significant long-term strategy to remain competitive in a rapidly changing world.
One director is not enough to drive the systemic change necessary at ExxonMobil. ExxonMobil’s board must be strengthened to improve the company’s underperformance linked to declining returns on capital expenditures and undisciplined capital allocation. As shareholders of ExxonMobil, we believe the ExxonMobil board requires significant change to fulfill these goals, and the candidates submitted by Engine No. 1 are equipped with the skills needed to address ExxonMobil’s financial underperformance and prepare for the global energy transition.
Following these announcements, it is even more apparent that shareholders need change at ExxonMobil.
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