Possible Prosecution of Exxon and Possibly Falling Short

This is a great development. While the story was broken over a month ago, the headlines today tell us that Eric Schneiderman, New York’s attorney general has launched an investigation into Exxon looking into allegations that the oil giant misled their shareholders and the public on the risks that global warming posed to the corporation’s business. Even the Wall Street Journal, which has ties to the global warming denial industry, printed the story.

            The corporate headquarters of Exxon in Irving, Texas acknowledged receiving the subpoena for internal documents, some of which go back 38 years, related to Exxon’s climate change research and business decisions.

            If Exxon actually knew of global warming and its dangers and paid off front groups to work at denying those hard facts, it may very well be the greatest wrong done to the world by a corporation. So it is a bit of an irony that the wrongdoing Exxon may wind up having to pay the piper for is that of their responsibility to their shareholders. Schneiderman is investigating Exxon under the Martin Act, a broad New York state law that allows for prosecution of companies for financial fraud, which includes the act of misleading stockholders.

            I don’t deny the importance of investors being properly informed of their financial risks when they put their money in a company like Exxon. After all, people rely on their investments to finance their children going to college or provide for a good retirement. But the people who are going to suffer the most from global warming are farmers whose lands may be hotter and drier and subject to more severe weather, coastal inhabitants who will have their beaches and bay fronts submerged under rising tides, and people who live on Pacific Islands, whose homelands may be lost to rising oceans.

            Isn’t there any law that can hold Exxon responsible for these people?