Where Things Stand
The California investigation will look into whether Exxon lied to the public and investors about what it knew about climate change, and whether the company violated certain environmental laws. The investigation follows reports that Exxon knew about the dangers of climate change going back to the 1970s, but instead promoted doubt about the science behind it.
California Attorney General Kamala Harris has not officially announced the investigation, but sources close to her have confirmed to the Los Angeles Times that the investigation is going forward.
The news from California marks the second climate-related inquest launched against Exxon in the past few months. In November, New York Attorney General Eric Schneiderman announced that his office would investigate Exxon for similar potential violations.
Exxon has now submitted thousands of its documents to Schneiderman’s office as part of a subpoena. In both the California and New York investigations, lies or misleading statements about climate change could amount to financial fraud, as investors may have viewed Exxon differently if the company had not minimized the seriousness of climate change.
Attorney General Schneiderman joined people around the world in celebrating the California investigation, and called climate change “the defining issue of our time.” He also made an important allusion:
“Just like any other publicly traded company, these energy giants have an obligation to ensure that their disclosures to investors of known and reasonably likely risks are truthful and not misleading, and to disclose to the public the risks associated with their products.”
By “energy giants,” Schneiderman means Exxon and other fossil fuel companies. In fact, sources close to the New York investigation told the New York Times that Schneiderman’s office is considering expanding the case to include other oil companies.
The case for that expansion is strong, and has only gotten stronger since the New York case was launched.
