Exxon Mobil routinely faces criticism from environmental groups, but now the New York attorney general has opened an investigation into whether the company was deceptive about the risks of climate change and environmental damage.
A subpoena was issued by Attorney General Eric T. Schneiderman for the company’s financial records, emails, and other documents, according to The New York Times.
“The investigation focuses on whether statements the company made to investors about climate risks as recently as this year were consistent with the company’s own long-running scientific research,” journalists Justin Gillis and Clifford Krauss wrote.
If Exxon deliberately ignored their research that was rigorous enough to dissuade investors from providing financial support, the company could face repercussions.
The investigation seems to center around practices that could be considered fraud or deception, not necessarily the company’s stance on environmental regulations and laws.
In fact, Exxon “published extensive research over decades that largely lined up with mainstream climatology. Thus, any potential fraud prosecution might depend on exactly how big a role company executives can be shown to have played in directing campaigns of climate denial.”
The law frowns upon companies who attempt to lie to or mislead investors.
Buzzfeed reported that Exxon “supports a tax on carbon pollution.” The company, however, has faced criticism for not doing more to protect the environment during its extraction operations.
With the fall of oil prices, Exxon’s earnings have “dropped significantly in the past two years,” according to Politico.
Even though humans can have trouble properly understanding environmental risk, either over-valuing or under-valuing it, the investigation goes beyond that. Opinions on climate change are not facing scrutiny, but rather company practices and honesty for its investors.
