Rockefeller family tried and failed to get ExxonMobil to accept climate change

Extract from The Guardian

Founding family of the US oil empire Exxon, begged the company to give up climate denial and reform their ways a decade ago – but attempts at engagement failed

Peter O’Neill, chair of the Rockefeller Family committee (C) sits with Neva Rockefeller Goodwin, economist, and great-granddaughter of John D Rockefeller and Stephen B Heintz, president, Rockefeller Brothers Fund during a news conference in which Rockefeller family members voiced concern about the direction of the oil company ExxonMobil in April 2008 in New York. Photograph: Spencer Platt/Getty Images

This article is 1 year old

Suzanne Goldenberg in New York

Friday 27 March 2015 23.59 AEDT 

Members of the Rockefeller family tried to get ExxonMobil to acknowledge the dangers of climate change a decade ago – but failed in their efforts to reform the oil giant.
In letters, lunch meetings, and shareholder resolutions, the descendants of John D Rockefeller, founder of the oil empire that eventually became Exxon, sought repeatedly to persuade the company to abandon climate denial and begin shifting their business towards clean energy.
“We were really begging the company to look harder at what they were doing. They were still into climate denial and funding deniers and really against any positive steps,” said Neva Rockefeller Goodwin, a co-director of the Global Development and Environment Institute at Tufts University, who helped lead the reform effort.
The outreach effort, led mainly by Rockefeller’s great grandchildren, began with a lunch meeting in 2004 with Exxon’s then head of investor relations.
“This was the family trying to get into a friendly conversation with ExxonMobil, feeling we have a strong historical connection with that company,” said Goodwin. “We wanted to start talking with the company about their view of the future and how they could be a constructive player as well as part of the problem.”

The company was blindsided. David Henry, then head of investor relations, was “stunned” at the family’s concern about climate change, according to Goodwin’s recollection of events.
“The head of investor relations was really surprised to find we didn’t love Exxon as it was but thought changes might be a good idea,” she said.
Over the next few years, Goodwin and about a dozen other Rockefellers launched three separate shareholder resolutions pressing Exxon to recognise climate change and invest in renewable energy. The cousins also sought an independent chairman, believing it would make the company more responsive.
At the time the oil company was the main funder of dozens of front groups and researchers rubbishing any link between the burning of fossil fuels and climate change – or denying climate change was occurring at all.
Among the recipients was Willie Soon, the Harvard-Smithsonian researcher who received more than $1m (£0.7m) from industry, according to documents obtained by Greenpeace through freedom of information filings.
In a report released on the eve of their 2008 annual general meeting, the oil company pledged to stop funding groups that promote climate denial.
However, the company continued funding Soon for three more years. The documents show that Exxon gave Soon an additional $76,106 from 2008 to 2010, despite claiming to have stopped.
The shareholder resolutions were easily defeated.

Steam rises from towers at an Exxon Mobil refinery in Baytown, Texas. Photograph: Pat Sullivan/AP

The US environmentalist Bill McKibben says the failure of the family’s efforts is telling and signals the limits of shareholder engagement with some fossil fuel companies. “It makes a very clear point that engaging with fossil fuel companies to somehow get them to change their ways is unlikely to work if the family of the founder can’t get Exxon to shift.”
The Rockefeller heirs also tried private and public pressure. Nearly 100 direct descendants also signed a letter expressing concern as investors and begging the company to stop funding climate deniers, Goodwin said.
In 2006, another cousin, Senator Jay Rockefeller, a West Virginia Democrat, and Senator Olympia Snowe, a Maine Republican, wrote a letter to the incoming Exxon chief executive Rex Tillerson, urging the company to stop funding climate deniers.
“ExxonMobil’s longstanding support of a small cadre of global climate change sceptics, and those sceptics’ access to and influence on government policymakers, have made it increasingly difficult for the United States to demonstrate the moral clarity it needs across all facets of its diplomacy,” the letter said. “It is our hope that under your leadership, ExxonMobil would end its dangerous support of the ‘deniers’.”
Most of the Rockefellers’ personal fortunes are held in trusts set up in the 1930s.
The family retains only a tiny fraction of shares in Exxon. But the stand taken by the Rockefellers – at a time when Exxon was under attack from campaign groups for its support of climate denial – rankled company executives who had expected family members to be allies, Goodwin said. “They were shocked to find this family that had a strong link with them, and that they expect to find a great friend and admirer ... had such a negative view.”
But even with the weight of that historical connection Exxon was still not persuaded to change.

Neva Goodwin. Photograph: GDAE/Tufts University

“I was pretty discouraged. Exxon has an extremely strong culture of believing that they are right and know what they are doing and really don’t need to listen to anybody else,” Goodwin went on. “It was clear that we didn’t have an ability to make more of a dent in that.”
When the Guardian asked for a comment on the Rockefellers’ attempts to engage with the company it issued this statement. “ExxonMobil will not respond to Guardian inquiries because of its lack of objectivity on climate change reporting demonstrated by its campaign against companies that provide energy necessary for modern life, including newspapers.”
Ken Cohen, ExxonMobil’s vice president for public and government affairs has previously been dismissive of the concept of fossil fuel divestment, saying that it is “out of step with reality”.
“There are no scalable alternative fuels or technologies available today capable of taking the place of fossil fuels and offering society what those energy sources provide,” he wrote in a blog in October.