Exxon’s Ex CEO Rex Tillerson Denies Allegations of Deceiving Investors
Allegations that Exxon Mobil had deceived investors, is denied by Rex Tillerson.
Rex Tillerson, who is the former CEO of the oil giant, has testified in New York that the impact of climate change was communicated to shareholders.
While testifying on Wednesday, Tillerson stated that the company had not deceived its shareholders about the true cost related to climate change in the long term.
This is the first case to go on trial regarding climate fraud, which has come up after a 4-year investigation. The oil giant faces charges that it is misrepresenting costs involved in the impact of climate change. Exxon uses the public proxy cost and greenhouse gas cost to show the impact of climate change on investors. The company states that it has calculated climate change impact and slowing fossil fuel demand.
Exxon faces charges that two different projections of the costs have been made, which has misled investors regarding the expected profits of the business. It had made assets more secure, says the jury.
In 2015, when investigations were first taken up, the charge against Exxon was that the company has been covering the impact of climate change for decades.
Tillerson has been the CEO and Chairman of Exxon from 2006 to January 2017. He later became the secretary of state in the Trump Administration.
Tillerson has given an explanation on how long term costs had been projected by the company for 2030 and 2040, under his tenure. He has explained that the company supported the regulatory measure imposed to bring down global warming through its carbon tax.
Through the litigation, it is expected that the company pay back profits related to this issue and remove fraudulent statements made.
Other companies that are also facing lawsuits are BP, Royal Dutch Shell, and Chevron. Energy companies are coming under the radar for their effect on the environment.