A $50-billion deal to settle lawsuits over its alleged role in the 2008 oil market collapse has cleared the way for the largest corporate settlement in history.
Exxon Mobil agreed to pay a total of $20.5 billion in fines and penalties in a $40 billion settlement with U.S. regulators on Wednesday.
The largest corporate case ever brought by the U.N. climate-change fund, the U of S Environmental Protection Agency and the U,S.
Securities and Exchange Commission, the $40-billion settlement was the result of more than two years of negotiations between U.K.-based Exxon Mobil and regulators.
Exxon will pay $9.9 billion in legal fees, while the U-S.
will pay a $2.5-billion penalty, according to the settlement.
The $40.4 billion settlement covers both the U.-S.
and the rest of the world, including BP and Royal Dutch Shell.
The deal came after the U government sued Exxon Mobil in December 2016 alleging it misled investors in the wake of the collapse of the oil market by falsely claiming it had a lower risk of climate-related disasters than it actually did.
The case is currently before the U.,S.
Supreme Court, which could decide whether the $60 billion Exxon Mobil settlement is legally binding.
Exxon has argued that the U was “failing” the climate and that the settlement “does not reflect the full picture.”
It has said that the companies have already invested billions in climate mitigation measures, and that they are currently working with their employees to “take all necessary measures” to mitigate their emissions.
“ExxonMobil and the companies it invests in have committed to reduce their carbon footprint to zero by 2030,” Exxon said in a statement, adding that the agreement will help them achieve that goal.
“We are pleased to see the U’s regulators agreeing to a $50bn settlement and look forward to working with the U to achieve the most effective, sustainable climate change solution possible,” it said.
In addition to the $30 billion in compensation for the U and the other countries that sued Exxon in 2016, Exxon has also agreed to donate $50 million to the climate fund, which will be used to “pay for climate adaptation efforts to mitigate climate impacts,” the company said.
Exxon said that it would also pay $2 billion to the U as part of the settlement and to the Climate Solutions Alliance, a group of business leaders including Mark Zuckerberg, Facebook Inc., Intel Corp., and Alphabet Inc. that formed in 2017 to advocate for a “more sustainable economy” and support climate action.
The U.s. will also provide $2 million in direct financial assistance to companies in the U that are engaged in climate action and will support companies that are “part of the U,” it added.