This is not about Exxon – U.S. on the Überholspur – The climate vote

From: POLITICO's The Long Game - Tuesday Jul 06,2021 04:06 pm
Jul 06, 2021 View in browser
 
The Long Game header

By Lorraine Woellert and Ben Lefebvre

THE BIG IDEA

Exxon Mobil CEO Darren Woods.

Exxon Mobil CEO Darren Woods. | Richard Drew/AP Photo

THE TRUST FRONTIER — Exxon Mobil Corp. uses trade associations as “whipping boys” to avoid congressional scrutiny. That was the dramatic confessional of the company’s senior lobbyist, Keith McCoy, who also told an undercover Greenpeace activist that the oil giant’s support for a carbon tax is just a talking point.

McCoy, who has lobbied for Exxon since 2014, apologized and said he was “deeply embarrassed.” Exxon CEO Darren Woods said he was shocked and disappointed. The company has started to refer to McCoy as an unnamed “individual.”

But this is not about Exxon. It’s about Washington. McCoy’s revelation was anything but. Public companies and their trade associations for years have dissembled and — let’s say it — lied about threats to public health, whether they’re greenhouse gas emissions, pharmaceuticals or tobacco.

It’s common Washington practice. Companies make benign public statements while funneling money to nonprofit front groups and think tanks that do their dirty work. It’s one reason shareholders have begun winning battles to force companies to disclose their political spending.

At Exxon’s annual meeting in May , 55 percent of shareholders voted in favor of disclosing all lobbying; nearly 64 percent endorsed climate lobbying transparency in particular. Other companies have volunteered — under pressure — to make similar reports.

The oil giant has used its charitable foundation to seed conservative groups for years. It has funded the American Legislative Exchange Council, a conservative group that writes industry-friendly bill language, and the Environmental Literacy Council, which attributes climate change to centuries-old solar activity.

Last year, it gave $100,000 each to the liberal Brookings Institution and the conservative American Enterprise Institute. The U.S. Chamber of Commerce got $250,000.

About the chamber: Researchers at the Brown University Climate Lab recently dug into the trade group’s archives, coming to the conclusion that it deliberately adopted a shifting discourse on climate to sow confusion and throw up hurdles to regulation.

Decades of industry dissembling have brought us to the policy impasse we’re in now. Many companies say they’re genuinely reversing course on climate risk now that their bottom lines are exposed. But how do they convince lawmakers and the public of their honest intent after they’ve poisoned the debate?

Now climate disinformation itself has been labeled a risk. An unpublished report blames think tanks, foundations and trade associations for promoting “contrarian” science that misleads the public and disrupts policymaking efforts.

The draft report, which was seen by POLITICO’s Zack Colman , is part of a forthcoming review by the U.N. Intergovernmental Panel on Climate Change, a global body that convenes hundreds of scientists to examine the state of climate research.

“Rhetoric on climate change and the undermining of science have contributed to misperceptions of the scientific consensus, uncertainty, unduly discounted risk and urgency, dissent, and, most importantly, polarized public support delaying mitigation and adaptation action, particularly in the U.S.,” the report said.

This isn’t over. Rep. Ro Khanna (D-Calif.), chair of the environmental panel of the House Oversight Committee, said he’s prepared to subpoena executives of Exxon, Royal Dutch Shell and Chevron Corp. about the industry’s climate change disinformation campaigns.

YOU TELL US

What is your company or trade group doing to regain trust? We’ll listen. Email lwoellert@politico.com and cboudreau@politico.com. We’re on Twitter at @ceboudreau and @Woellert. FOMO? Sign up for the Long Game.

 

SUBSCRIBE TO WEST WING PLAYBOOK: Add West Wing Playbook to keep up with the power players, latest policy developments and intriguing whispers percolating inside the West Wing and across the highest levels of the Cabinet. For buzzy nuggets and details you won't find anywhere else, subscribe today.

 
 
VERBATIM

Günther Thallinger

Günther Thallinger | Ciaran McCrickard/World Economic Forum

While Exxon sorts out its message on carbon pricing, a U.N.-convened group on Tuesday proposed a hybrid tax plan that it hopes will gain political support. In a paper prepared in advance of a G-20 climate meeting Sunday, the Net-Zero Asset Owner Alliance called for a carbon price floor and ceiling that could limit volatility and maintain a level playing field across borders.

Günther Thallinger, chair of the alliance and a board member at insurer Allianz Group, told the Long Game that the goal is to transform the economy.

The goal here is an orderly shifting of assets, right?

The point is that the economy transforms. That’s the point. What are the assets that we have? If you go into the $6.6 trillion that we have as the owner alliance, we invest in corporate bonds, we have also, of course, infrastructure investments and the like. So that transformation is in essence the transformation of the economy.

You fundamentally have to change the decision-making. People always talk about what is sustainable capitalism. Sustainable capitalism starts to emerge if the decision-making integrates sustainability.

The U.S. seems behind on the policy curve.

For me, it would be very difficult to say the U.S. is far behind. It could be that the U.S. is on the Überholspur, a German word that means to take over — one car takes over the other car.

You sound optimistic.

Clearly. It would be very difficult to not sound optimistic. If that speed is kept, it won’t be difficult to accelerate here in Europe, not to speak of some other parts in the world.

Are we getting to the point where some assets, such as housing, will no longer be insurable?

It’s absolutely the case. The risk of certain assets is changing for the worse. There’s no discussion.

Sustainable Finance

JPMorgan Chase will acquire OpenInvest, an investing platform that allows people to create values-based portfolios.

CORPORATE PROMISES

Neiman Marcus Group will go fur-free. The luxury retailer’s animal welfare policy aligns with Fur Free Alliance guidelines and is part of an ESG push.

Around the Nation

“Climate change is real.”

“Climate change is real.” | David McNew/Getty Images

THE CLIMATE VOTE — Latinos consistently express more concern about climate than African Americans and non-Hispanic whites, even ranking the issue with immigration in the 2020 presidential election.

The findings, from the Yale Program on Climate Change Communication, challenge the idea that climate change is predominantly a priority for white people. It also suggests that political candidates could be missing an opportunity with Latino voters when it comes to messaging on greenhouse gas emissions.

“Climate change and its impacts affect everybody, but not equally,” said Anthony Leiserowitz, director of the Yale program. Certain communities “are hurt first, and far worse, when these impacts finally hit.”

The fight over voting rights could be of particular consequence for communities of color, which means it also has the potential to thwart their ability to support clean energy and climate policies.

Efforts to mandate voter identification, limit mail-in ballots, and even ban distribution of water and food to voters standing in line at polling places could depress turnout among communities of color and other populations vulnerable to the impact of climate change.

“We know from study after study after study that Black and brown communities, minority populations, are the most likely demographic to vote for climate policy,” said Heather McTeer Toney, climate justice liaison for the Environmental Defense Fund and senior adviser to Moms Clean Air Force. “To have that vote suppressed is in effect cutting off our nose to spite our face.”

WHAT WE'RE CLICKING

— A Pemex pipeline erupted on Friday, setting the ocean on fire west of Mexico’s Yucatan peninsula. The state oil company blamed a gas leak and said the blaze had been extinguished, but not soon enough to stop social media from erupting, too.

— The Village of Lytton burned to the ground after setting a new Canadian record for heat. A human cause is suspected, and now First Nations leaders in Interior British Columbia say they’ll block train traffic until they have a say in recovery plans.

The Village of Lytton.

The Village of Lytton. | Darryl Dyck/The Canadian Press via AP

— Scientists are planting an underwater prairie in Virginia. It’s the world’s largest seagrass project, Reasons to be Cheerful reports.

With help from Shayna Greene, Nancy Vu and Gloria Gonzalez.

 

SUBSCRIBE TO "THE RECAST" TODAY: Power is shifting in Washington and in communities across the country. More people are demanding a seat at the table, insisting that politics is personal and not all policy is equitable. The Recast is a twice-weekly newsletter that explores the changing power dynamics in Washington and breaks down how race and identity are recasting politics and policy in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country and hear critical new voices that challenge business as usual. Don't miss out, SUBSCRIBE . Thank you to our sponsor, Intel.

 
 
 

Follow us on Twitter

Catherine Boudreau @ceboudreau

Lorraine Woellert @Woellert

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to .

More emails from POLITICO's The Long Game