The New York case is different in nature as it essentially revolves around investor fraud. From 2010, Exxon told the public it had assigned a price to carbon to account for how government regulation would affect its business. However, it privately used a much lower figure, allowing it to make carbon-heavy investments such as in the tar sands of Alberta, Canada, that would appear much less profitable otherwise.
The lawsuit, now led by the New York attorney general, Leticia James, alleges Exxon ran a “longstanding fraudulent scheme”.
“Exxon in effect erected a Potemkin village to create the illusion that it had fully considered the risks of future climate change regulation and had factored those risks into its business operations,” the lawsuit states.
“As a result of Exxon’s fraud, the company was exposed to far greater risk from climate change regulations than investors were led to believe.”