ExxonMobil ($XOM) is a gas company. They’re the biggest oil company in the world. They’re actually the seventh biggest anything company in the world by sheer size and revenue. They’re incredibly profitable, raking in hundreds of billions in revenue each year while making billions in profit.
ExxonMobil really doesn’t care about climate change, which is a totally real phenomenon that even they cannot dispute. In fact, the company knew in the mid-20th century that climate change was real and misled the world about it.
ExxonMobil’s shareholders really want the company to address the increasingly hotter elephant in the room. After many years of struggling to do so, shareholders voted today in favor of the company tackling this controversial subject head-on. Now, ExxonMobil has to come clean about what their future plans entail — and how they will survive in a warming world.
At the company’s annual meeting today, ExxonMobil shareholders voted in favor of forcing the company to address how climate change affects their future business. Individual investors and giant, stake-holding financial institutions voted to make the company compile annual reports on climate change, something ExxonMobil really did not want to do. After giant stakeholders like BlackRock, Vanguard, and the New York State Retirement Fund voted in favor of the resolution, ExxonMobil will have to finally tell the truth about how climate change affects their company.
Why did this happen?
The eventual decrease in oil reserves and use of petroleum products would cut into the company’s bottom line. It would also more or less negate their existence. ExxonMobil knows this, so they’re doing everything to eke out profits and get people to use oil. Unfortunately, this is not sustainable for ExxonMobil and the planet. By researching the effects of climate change, ExxonMobil could make drastic changes to their business model and welcome alternative sources of cleaner energy.
What does this mean for the future?
ExxonMobil isn’t going to stop selling oil overnight, but the company has to put together reports on what they’re doing in case people stop using oil or if reserves decrease. This will prepare them for a future with a decreased dependency on oil. It could possibly move them into solar, wind, and other sectors. They could also just figure out clever ways to keep selling oil and making massive profits. Time will tell, though shareholders are becoming increasingly more vigilant. With billions of dollars and future growth at stake, anyone would be concerned with a company whose business model could soon be obsolete.
Should you invest in ExxonMobil?
If you want to invest in an oil company, $XOM might be the way to go. If you want to invest in clean energy, there are plenty of other companies and ETFs you could look into — $ETHO being one of them. Just be sure to do your research before you invest in any stock. Otherwise, you might not know what you’re buying into.