{ "docId": "019de071-041e-72bc-a4a4-b0331dc0dafb", "docSlug": "8f2bf126f524c30adef79c8d33966ec8", "documentTitle": "Engine No. 1 | Activist Presentation Deck | 83 slides", "authorId": "engine-no-1", "authorName": "Engine No. 1", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2021-05-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 32, "pageCount": 83, "prevPage": 31, "nextPage": 33, "slideType": "key_messages", "function": "summarize", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a 'quote-as-evidence' strategy to validate the thesis that the company has a viable path forward in a low-carbon economy.", "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de071-041e-72bc-a4a4-b0331dc0dafb/32", "deckHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb", "deckJsonHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb.json", "deckAnchorHref": "/decks/019de071-041e-72bc-a4a4-b0331dc0dafb#slide-32", "components": [ { "bbox": { "h": 0.6, "w": 0.45, "x": 0.05, "y": 0.2 }, "kind": "list", "text": "The energy transition will require technological innovation at scale, and the Oil Majors can utilize their size, global influence, and complex energy project expertise to play an important role. The Oil Majors can also create significant long-term value by demonstrating that they have a role to play in the event of a material energy transition. While the idea of ExxonMobil advancing an energy transition may seem farfetched, it is more in line with market sentiment than a decades-long pursuit of continued fossil fuel reserve growth", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "00ee77f4-38c0-40e8-8a87-a3483bb04d9b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.45, "x": 0.52, "y": 0.42 }, "kind": "quote", "text": "Big Oils have shown tremendous ability to adapt to technological change in their 100+ years of history. We believe it is now strategic that they drive a low carbon transition consistent with the Paris Agreement...", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "129aaa69-dbcb-467b-a80e-8ce6e99bb835", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.45, "x": 0.52, "y": 0.7 }, "kind": "quote", "text": "[T]here is further valuation upside if the Majors can demonstrate a credible transition strategy as it means the terminal value of these businesses are not zero.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "38b27886-72b9-4178-ad71-80ca9dfd0fb9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.45, "x": 0.52, "y": 0.18 }, "kind": "quote", "text": "As world leaders struggle to adopt coordinated and effective climate policies, the choices made by oil companies, with their deep pockets, science prowess, experience in managing big engineering projects and lobbying muscle may be critical.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "47fafc27-677f-41f5-a38b-e9be8a2a69e4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.05, "y": 0.92 }, "kind": "source-note", "text": "Quote Source: Clifford Kraus (Sep. 21, 2020). U.S. and European Oil Giants Go Different Ways on Climate Change. New York Times. Michele Della Vigna (Oct. 12, 2018). Re-Imagining Big Oils: How Energy Companies can successfully adapt to climate change. Goldman Sachs. Peter Low (May 8, 2020). Tackling the Terminal Value Problem. Redburn.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61442454-59a0-4a69-bb39-d65888e74200", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "With the right strategic oversight, ExxonMobil can still play a profitable role in the energy transition", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "64ef1975-6599-45b4-b4ef-36babd166827", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "4823bd1f-dbb9-4e9f-a3da-034f09d3d4e6", "evidence": "Uses quotes from NYT, Goldman Sachs, and Redburn to support the thesis.", "confidence": 0.9 } ], "arcBeats": [ { "to": 40, "from": 19, "beatId": "3446e6dd-ae72-4495-91c6-c00f60f5c4be", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate (Make it worse)", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The document highlights the consequences of ExxonMobil's current strategy, including value destruction and lack of progress on emissions reduction.", "position": 1, "confidence": 0.9, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 40, "from": 25, "name": "Iceberg", "slug": "10-iceberg", "bestFor": "Consulting, complex problem solving, organizational change", "matchId": "03e2ddc8-7171-4302-a7e4-062dbc767b1e", "evidence": "The document highlights the underlying issues with ExxonMobil's strategy and capital allocation, including lack of discipline and poor returns.", "position": 1, "objective": "Reveal the underlying issues with ExxonMobil's strategy and capital allocation", "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause", "confidence": 0.8, "description": "Reveal that the visible problem is merely a symptom of a deeper root cause" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }