Fed Comes Calling Over Exxon Mobil's Climate-change Statements

(RTTNews) - Oil giant Exxon Mobil (XOM) is being probed by a New York state official on whether the company lied about the effect of climate change on its profit.

ExxonMobil includes information about the business risk of climate change for many years in its 10-K, Corporate Citizenship Report and in other reports to shareholders.

The company Wednesday received a subpoena for production of documents relating to climate change from Eric Schneiderman, the attorney general of New York.

The subpoena is said to seek financial records, statements and other climate-change-related material dating as far back as 1977.

In its 10-K annual report for 2014, the oil giant said many countries are considering rules for reduction of greenhouse gas emissions amid concerns over climate change.

"These requirements could make our products more expensive, lengthen project implementation times, and reduce demand for hydrocarbons, as well as shift hydrocarbon demand toward relatively lower-carbon sources such as natural gas" the company had stated.

It also said the new rules may increase its compliance costs like for monitoring or sequestering emissions.

The investigation is said to focus on whether Exxon Mobil made timely and accurate disclosures about how its climate-change research, impact of long-term environmental shifts and any movement away from usage of fossil fuels could have on the company's profits.

The company Thursday held a media call on the subpoena and has a blog which provides information about ExxonMobil's climate research.

Coal producer Peabody Energy (BTU) was issued a subpoena in 2013 over its climate-change statements, and the company handed over documents in response. The issue was disclosed a year later, and the company continues to work with the New York Attorney General's office regarding these disclosures.