Exxon Mobil Corp on Wednesday said for the first time some of its oil and gas properties may face impairment due to climate change, according to a securities filing.
The largest U.S. oil company's board will test assets for climate impairments "in the context of overall enterprise risk" during the annual asset review by its board of directors. "Certain assets could be at risk for impairment," it said.
Earlier this year, Exxon's board was overhauled with three new directors in a proxy battle that weighed heavily on the company's failure to address climate change in the past. Hedge fund Engine No. 1 was successful in convincing enough shareholders a new board could improve performance and rethink the energy transition.
Exxon did not immediately reply to a request for comment.
Directors will analyze factors including future energy supply, regulation, government policies and greenhouse gas restrictions, the company said.
In a securities filing, Exxon said it "views climate change risks as a global issue that requires collaboration among governments, private companies, consumers and other stakeholders to create meaningful solutions."
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