ILMA Compoundings February 2017 - 24

The Scorecard literally
creates metrics against
which any rational
corporation wishing to stay
in business must "fail."
such as the National Association of Manufacturers and the U.S.
Chamber of Commerce, which the Scorecard specifically cites.
The Scorecard literally creates metrics against which any rational
corporation wishing to stay in business must "fail." And that Hobson's choice is then used to show the public and policymakers that
these companies are the evildoers stopping effective climate change
action. By creating an unattainable and utterly ridiculous set of
standards, activists set up companies - and the industry - for
increasing condemnation.
Worse, the Scorecard has inspired activists and certain policymakers alike to take steps to implement their industry-crippling
agenda. A significant example of that occurred last December,
when Rhode Island State Treasurer Seth Magaziner announced that
"the state pension fund would join other shareholders in ConocoPhillips, Exxon Mobil, Chevron and Devon Energy in seeking to
force those companies to disclose more of their lobbying activities."
While it's troubling that the state of Rhode Island is engaging
in anti-industry shareholder activism, it is even more alarming
that the state is following the environmental activists' playbook to
the letter. In his letter to ConocoPhillips announcing his decision
to use the state pension fund for shareholder activism, Magaziner

made requests that are taken directly from the Climate Accountability Scorecard.
For example, in both the letter and the proxy resolution,
Magaziner requested that ConocoPhillips disclose its relationship
with the U.S. Chamber of Commerce, which they say creates "an
integrity problem for ConocoPhillips since the Chamber actively
campaigns against the new EPA Clean Power Plan and sued the
EPA to stop it."
Revoking the "social license" of oil and natural gas companies to
operate - which activists have listed as a main goal of the Climate
Accountability Scorecard - has implications for everyone who
relies upon this industry and its products (which is obviously all of
us). But it is of particular concern to industries such as lubricant
and grease manufacturers, whose very existence depends on a
steady and reliable source of oil to produce their products.
In addition to higher prices, the activist-driven campaign to
demonize the oil and natural gas industry (a tactic that they then
use to justify onerous government regulation) will quickly spread
beyond the initial targets to any industry associated with or using
fossil fuels to create products. This could include lending restrictions, burdensome disclosure requirements as small businesses
attempt to estimate the impact of future potential climate changes,
and increased regulation of where and how companies use oil and
natural gas to produce products.
So, while it would be easy to dismiss the activists' Climate Accountability Scorecard as a PR stunt, the Rhode Island treasurer's
actions make it clear that these activists - and their reports - are
being used to justify real threats to companies' ability to affordably
and reliably produce the millions of petrochemical products that
make modern life possible.

Doyle is a partner at Doyle McDonald. He can be reached at
703-447-1124 or doyle@doylemcdonald.com.

24

FEBRUARY 2017

| COMPOUNDINGS | ILMA.ORG


http://www.ILMA.ORG

ILMA Compoundings February 2017

Table of Contents for the Digital Edition of ILMA Compoundings February 2017

Letter from the CEO
Inside ILMA
What's Coming Up
New Members
Perspective
Industry Rundown
In the Know
International Insight
Market Report
Your New BFF: How Technology Will Boost the Sales and Customer Service Interaction for Your Lubricants Company
The Climate "Accountability" Movement: Why It Matters to the Lubricants Industry
Wind Power Ramps Up Lubricant Demand
Business Hub
Counsel Compound
Washington Landscape
In Network
Portrait
ILMA Compoundings February 2017 - Cover1
ILMA Compoundings February 2017 - Cover2
ILMA Compoundings February 2017 - 1
ILMA Compoundings February 2017 - 2
ILMA Compoundings February 2017 - Letter from the CEO
ILMA Compoundings February 2017 - Inside ILMA
ILMA Compoundings February 2017 - 5
ILMA Compoundings February 2017 - What's Coming Up
ILMA Compoundings February 2017 - New Members
ILMA Compoundings February 2017 - Industry Rundown
ILMA Compoundings February 2017 - 9
ILMA Compoundings February 2017 - 10
ILMA Compoundings February 2017 - In the Know
ILMA Compoundings February 2017 - International Insight
ILMA Compoundings February 2017 - 13
ILMA Compoundings February 2017 - Market Report
ILMA Compoundings February 2017 - 15
ILMA Compoundings February 2017 - Your New BFF: How Technology Will Boost the Sales and Customer Service Interaction for Your Lubricants Company
ILMA Compoundings February 2017 - 17
ILMA Compoundings February 2017 - 18
ILMA Compoundings February 2017 - 19
ILMA Compoundings February 2017 - 20
ILMA Compoundings February 2017 - 21
ILMA Compoundings February 2017 - The Climate "Accountability" Movement: Why It Matters to the Lubricants Industry
ILMA Compoundings February 2017 - 23
ILMA Compoundings February 2017 - 24
ILMA Compoundings February 2017 - 25
ILMA Compoundings February 2017 - Wind Power Ramps Up Lubricant Demand
ILMA Compoundings February 2017 - 27
ILMA Compoundings February 2017 - 28
ILMA Compoundings February 2017 - 29
ILMA Compoundings February 2017 - 30
ILMA Compoundings February 2017 - 31
ILMA Compoundings February 2017 - Business Hub
ILMA Compoundings February 2017 - 33
ILMA Compoundings February 2017 - Counsel Compound
ILMA Compoundings February 2017 - Washington Landscape
ILMA Compoundings February 2017 - 36
ILMA Compoundings February 2017 - 37
ILMA Compoundings February 2017 - In Network
ILMA Compoundings February 2017 - 39
ILMA Compoundings February 2017 - Portrait
ILMA Compoundings February 2017 - Cover3
ILMA Compoundings February 2017 - Cover4
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