Exxon leads the charge on the ‘carbon bubble’

Exxon Mobil Corp. is leading a parade of energy companies that will confront the issue of the so-called “carbon bubble” – the idea that fossil-fuel assets such as Canada’s oil sands are overvalued and risky for investors in a world that must reduce its greenhouse gas emissions. In an agreement with institutional shareholders, Exxon has agreed to disclosure by the end of March of how climate change regulations could affect the value of its worldwide assets, including its major holdings in Alberta’s oil sands. Companies such as Suncor Energy Corp., Royal Dutch Shell PLC and Total SA have pledged to release their own reports on how their valuations would hold up in a low-carbon world.