Rex Tillerson misled Exxon Mobil investors on climate change, NY AG says

Nathan Bomey | USA TODAY

Show Caption Hide Caption Tillerson hopes for climate deal perspective U.S. Secretary of State Rex Tillerson told reporters Friday that "hopefully" people can keep the decision to quit the Paris Climate Accord "in perspective." (June 2)

New York's attorney general accused U.S. Secretary of State Rex Tillerson of misleading investors on the costs of climate change while Tillerson served as CEO of Exxon Mobil.

The accusation, made in a court filing Friday in New York, reflects the latest development in an investigation of the energy giant's role in accounting for the potential costs of climate change.

Exxon documents turned over to New York investigators during the probe show the company used "secret, internal figures" that were lower than numbers publicly disclosed to investors from 2010 to 2014, New York Attorney General Eric Schneiderman's office said in the filing.

"Exxon’s documents show that former chairman and CEO Rex Tillerson was specifically informed of, and approved of, this inconsistency," Schneiderman's office said in the document.

Exxon spokesman Scott Silvestri defended the company's accounting process, saying its application of a "proxy cost of carbon" was "unmistakably clear" and acceptable. The company blasted Schneiderman for "inaccurate and irresponsible allegations."

"The fact that the attorney general gave its filing to the media before the court illustrates, once again, this investigation is about politics and publicity, not law enforcement," Silvestri said in an email.

Any evidence that Exxon misled investors on the potential costs of climate change could trigger significant financial liability. Publicly traded companies are required to disclose to their investors any potentially major economic challenges, including financial threats such as the possibility of steep new taxes or tough government regulations.

The Securities and Exchange Commission is investigating the matter.

The allegation came a day after tensions over climate change intensified when President Trump announced his decision to withdraw the United States from the Paris climate accord.

A State Department representative referred questions to Exxon.

Schneiderman's office said the documents allegedly showing Tillerson authorizing the bogus communication on climate costs came to light through a subpoena. ExxonMobil initially contended that the company should not be compelled to allow its accounting firm, Pricewaterhouse Coopers, to turn over documents similarly subpoenaed by New York investigators. New York's Supreme Court ruled in October in favor of Schneiderman's office.

New York investigators accused Exxon of "destruction of untold numbers of documents" from more than a dozen employees, including "months" of Tillerson communications in which he used a second company email account under an alias that Exxon failed to disclose to the attorney general's office.

Contributing: Kevin McCoy

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.