Good evening from England!

My role on this call today is to summarize the new claros consulting report entitled "Sleeping Tiger, Hidden Liabilities: Amidst Growing Risk and Industry Movement, ExxonMobil Stays Still."

This Claros Consulting report was sponsored by the coalition for environmentally responsible economies - known as "CERES" -- and Campaign ExxonMobil. You've already heard from Peter Altman and Mindy Lubber from CERES will be speaking after me.

The new report from Claros Consulting contains two main conclusions:

First - ExxonMobil is now alone among the world's four largest oil companies - the "supermajors" - when it comes to failing to deal with global warming. This is something that really just happened in the last year .

And .

Second - the past year also has seen the risks of climate change significantly increase and ExxonMobil's competitors strengthen their strategic positions on the issue.

Since its shareholders voted in record numbers last spring to urge it to start acting on global warming, ExxonMobil has been almost immobile - no pun intended.

As a result, ExxonMobil now is the only oil supermajor without a clear strategy to manage the risks of climate change or capitalize on its opportunities.

ExxonMobil appears to be relying on a "hope for the best" strategy, one that works as long as the risks of climate change evaporate. But should anything else occur, the company will be unprepared to manage the risks and protect long-term shareholder value.

There is unmistakable evidence of increasing climate risk. In fact, it could be argued that these risks have gone from theory to reality in the last 12 months.

Here are just some of them:

• Carbon caps and fines in Europe are now set to begin in 2005.

• Canada ratified the Kyoto protocol in late 2002 over ExxonMobil's objections. Russia's statement of intent to ratify the treaty means it could come into force soon.

• Renewable energy mandates are now in force in fifteen countries and thirteen states, and more appear to be on the way.

• British Prime Minister Tony Blair committed to a 60 percent reduction in U.K. emissions by 2050, and is asking the E.U. to make a similar commitment.

And that's just on the regulatory side. the changes may be happening in a bigger and faster way on the market side - where ExxonMobil's "ostrich strategy" is really putting it - and its shareholders - at risk.

Consider these facts about the last year:

• Renewable energy was the fastest growing energy source in the world again, with growth rates continuing to hover in the 25%-30% range.

• ExxonMobil's competitors strengthened their positions in renewables, adding to their investments and driving harder for market share. Major new investors jumped in, including general electric and Warren Buffett.

The Claros report also discusses other factors - including the potential for climate-related litigation by state attorneys general in the U.S. - and I encourage you to review this risk discussion in detail.

But the bottom line is this: ExxonMobil's non-strategy "strategy" places it behind all three of the other supermajor oil and gas companies - Shell, BP, and Chevron Texaco. These companies are adopting energy strategies that will make it likely easier for them to adapt to carbon constraints, greenhouse gas emissions trading and new energy mandates.

These strategies include such things as incorporating "carbon pricing" into future planning scenarios and decisions, setting emissions reductions targets, developing emissions trading experience, and investing in renewable energy.

But ExxonMobil is not reporting the use of any of these strategies, and little that the company has done suggests it is preparing to manage the risks of climate change.

And that is exactly why shareholders in the company should be concerned. There was a risk a year ago when a record number of them urged ExxonMobil to wake up to climate-change issues. Those risks are much bigger today - due in large part to the company's refusal to start doing something about global warming.

Of course, ExxonMobil has engaged in certain climate-related activities over the past year. It has donated money for research and talked about its partnership on fuel-cell technology that will only pay off decades down the road - but already is being written off by other, more serious players in the marketplace.

While these are at least the beginnings of what might be called positive signs, ExxonMobil will only catch up to its peers by including clear goals, timelines and targets for the company's activities, as well as explaining how the company will manage pressures for emissions reductions, new products, or research and development.

At this point, ExxonMobil is not addressing the fundamental concerns expressed by a growing portion of the company's shareholders - that it should properly disclose how it is addressing the risks and opportunities from climate change and renewable energy and how it is preparing to protect long-term shareholder value from the risks.

The report we are releasing today makes the point that this failure to act by ExxonMobil now qualifies as a governance failure. by essentially abdicating responsibility for reviewing the management of one of the major risks facing ExxonMobil, the board is not serving the best interests of shareholders.

Because management and the board have not adequately explained the company's strategy on climate change and renewables, the onus falls on shareholders to ask the questions and raise the concerns that will prompt them to do so.

The Claros Consulting report discusses the resolutions that will be considered by shareholders on May 28th and recommends how they should be reviewed by those who will cast their shares.

In closing . I want to share this thought .

As some of you know, we issued a major report last year before ExxonMobil shareholders voted. What we found this time - a year later - is that the global warming risks the company faces are considerably worse and that much of this additional risk was needlessly self-inflicted by the inaction of ExxonMobil's management and board.

That concludes my comments. Thank you for your attention. I look forward to taking your questions during the Q&A period.