District of Columbia v. Exxon Mobil Corp.

District of Columbia v. Exxon Mobil Corp. is an ongoing lawsuit filed against Exxon Mobil Corporation and ExxonMobil Oil Corporation by the District of Columbia (D.C.). This case is one of a long list of lawsuits filed against ExxonMobil including environmental and ethical wrongdoings.

Background

ExxonMobil

ExxonMobil is a multinational oil and gas corporation headquartered in Irving, Texas. It is the largest publicly traded oil and gas company in the world, making it one of the most profitable companies. In addition to this, ExxonMobil is a major player in the global energy market. Exxon Mobil has operations in over 30 countries, and its operations are divided into four business segments: Upstream, Downstream, Chemical, and Corporate & Financing.

The D.C. Consumer Procedures Act 1976

The D.C. Consumer Protection Procedures Act ("CPPA") is a remedial statute that is to be broadly construed. It establishes an enforceable right to truthful information from merchants about consumer goods and services that are or would be purchased, leased, or received in the District of Columbia.[1]

Historical context

Economic impact

The District of Columbia V. Exxon Mobil Corp. is and can continue to be a landmark case that had a significant impact on the economy of the United States. The case involves allegations that ExxonMobil has not only misled the public about the effects of climate change occurring but also misleads investors into believing that ExxonMobil was more climate-friendly. ExxonMobil continues to publicize how environmentally friendly they are on their website, claiming to strive to be a leader in the industry.[7] Only 0.2 percent of capital investments by ExxonMobil are in green technology.[1] This information misleads consumers and investors and portrays ExxonMobil as a company that shows the good impacts of their company on the environment but hides the bad ones.[8] One of the most significant economic impacts of this case is on the fossil fuel industry. ExxonMobil, as one of the largest fossil fuel companies in the world, is seeing and will continue to see the consequences of its own actions as this court case continues, even if the case sides with ExxonMobil. This case, among other cases from ExxonMobil like People of the State of New York v. Exxon Mobil Corp., serves as a wake-up call for the industry, highlighting the need for companies to be transparent about their climate risks and the potential economic impact. The New York case ruled that ExxonMobile did not mislead investors directly through their actions. It has made investors aware of how it is possible to weave around laws to hide their actions, affecting investors instead of consumers with District of Columbia v. Exxon Mobile Corp.[9] These cases will put pressure on other companies to not hide their information, creating environmental and economic transparency which will benefit investors and consumers.[9]

ExxonMobil themselves would face a great loss if the case were decided in favor of the District of Columbia. They would have to pay damages from the case along with facing additional backlash from the public. Much of this along with the other economic impacts is still uncertain as the case has not been settled and depends greatly on which side wins.[2]

Political impact

The lawsuit also raises questions about the role of government regulation in addressing climate change. The case exposes the need for stronger regulations to hold companies accountable for their impact on the environment and the economy. There also is a cause for concern about the government not intervening sooner. ExxonMobil was caught withholding information just years earlier with the People of the State of New York v. Exxon Mobil Corp.[10] Both cases concern withholding information from the public.[1][9] ExxonMobil has repeated its past behavior by misleading investors and consumers. Additional laws within the government are solutions to prevent ExxonMobil and other companies from misleading the public. This case falls particularly hard on the government as ExxonMobil has received subsidies from them. For decades, ExxonMobil has been receiving state and local subsidiaries including loans and bailouts.[11] Exxon has also caused sparks with the campaign #ExxonKnew. The #ExxonKnew campaign against ExxonMobil claiming that Exxon knew about its effects on climate change for the past 40 years.[12] The campaign also claims that Exxon withheld the information to make a profit which misled stockholders, investors, and consumers.[8] The campaign was kickstarted in 2012 when the Rockefeller-funded organized conferences which included The Union of Concerned Scientists and the Climate Accountability Institute. The first article with the tag #ExxonKnew was published on September 16, 2015, on Inside Climate News.[13] The campaign has continued to spread over the past decade and has highlighted that Exxon has not only known about climate change but that they have actively engaged with environmental technology as well. This includes spending one million U.S. dollars measuring how much is absorbed by the ocean and not speaking that information and advanced technology to the public.[12] The #ExxonKnew campaign has been spreading this information through multiple platforms including sources such as The New York Times, and continues to spread information, including about the District of Columbia v. Exxon Mobil Corp. case,[13] adding to the criticism of ExxonMobil.

court	United States District Court for the District of Columbia
start date	June 25th, 2020
appealed from	Superior Court of the District of Columbia
appealed to	United States District Court for the District of Columbia

District of Columbia v. Exxon Mobil Corp.

Background

ExxonMobil

The D.C. Consumer Procedures Act 1976

Historical context

Environmental impact

Economic impact

Political impact

Official statements

Similar cases

Minnesota

New York

Massachusetts

Current status

References