The oil and gas giant has come under fire over allegations that it misled investors about how climate change will affect the future of the company.
The New York attorney general filed a lawsuit against Exxon Mobil last year. The company allegedly misled investors about the business risks associated with regulations meant to fight climate change. Specifically, the attorney general alleges that Exxon Mobil covered up the costs that it’ll incur as a result of government regulations that take aim at greenhouse gas emissions. This is the second time a climate case in the US made it to trial.
Exxon has come under fire by environmentalists in the past. The controversy surrounding the company is not only due to the company’s contribution to the climate crisis. Environmentalists allege that Exxon has understood for decades that burning oil and gas will heat the planet up but has tried to obfuscate or even deny these facts. The lawsuit against the company is now being handled by New York attorney general Leticia James, who accuses Exxon of running a “longstanding fraudulent scheme”.
“Exxon in effect erected a Potemkin village to create the illusion that it had fully considered the risks of future climate change regulation and had factored those risks into its business operations[…] As a result of Exxon’s fraud, the company was exposed to far greater risk from climate change regulations than investors were led to believe,” the lawsuit reads. Exxon Mobil, for its part, denies the allegations. “The New York attorney general’s case is misleading and deliberately misrepresents a process we use to ensure company investments take into account the impact of current and potential climate-related regulations,” an Exxon Mobil spokesman said.