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ExxonMobil is changing the way it communicates on environmental issues in a bid to repair its woeful public image, Environment Vice President Frank Sprow tells the Petroleum Argus.

Full article

Weekly Petroleum Argus
November 11, 2002

ExxonMobil is changing the way it communicates on environmental issues in a bid to repair its woeful public image.

The firm wants to highlight its effort to reduce greenhouse gas emissions rather than its controversial opinion on the science behind global warming . As part of its shift, it is adopting an emollient tone on the issue.

"We need to do what we can to get the message across more clearly," the major's vice-president in charge of safety, health and the environment Frank Sprow tells Argus. "Let's focus on what it's appropriate for people to do even though we don't think the science is settled. We are trying to communicate that we see the risk."

Environmental lobby groups have demonised ExxonMobil because of its uncompromising stance on key environmental issues. The firm questions the science behind climate change, rejects the Kyoto protocol on reducing greenhouse gas emissions, and refuses to invest in renewable energy. In contrast, rivals BP and Shell are both investing in renewables and back Kyoto.

Leading environmental groups Greenpeace and Friends of the Earth have co-ordinated a worldwide boycott of ExxonMobil's service stations. The protest has not had a material impact on revenues. But it could be damaging in the medium term. "There's no doubt that the boycott is one of the major factors behind the change," Sprow says. He insists that the firm can beat the boycott.

Ethical equity investment funds, which are mushrooming in size and value, are shunning the company. The boycott threatens to erode its customer base. Deutsche Bank referred to the "brand risk" associated with Exxon Mobil, in a recent report entitled Crossing the Rubicon, as it is gaining a "reputation as environmental enemy number one".

Yet environmentalists are likely to want to see substantive changes in policy before they call off their campaign. "We don't respond very well to litmus tests," says Sprow. But he stresses that ExxonMobil is at least "trying to be more forthcoming". The company is even calling for "mandatory reporting of emissions for all companies in all areas" an has talked with various governments about the issue.

ExxonMobil has even approached the US administration. The move marks a big change for the company, which has in the past been forced to fend off claims that it has the ear of the US government at the expense of the environment.


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