The philanthropic arm of the Rockefeller family said the "morally reprehensible conduct" of Exxon Mobil was in part behind a decision to divest from fossil fuels.

The Rockefeller Family Fund said it was in the process of dismantling its investments in the fossil fuels industry.

"While the global community works to eliminate the use of fossil fuels, it makes little sense, financially or ethically, to continue holding investments in these companies," the fund said in a statement. "There is no sane rationale for companies to continue to explore for new sources of hydrocarbons."

New York City is leading a national trend in divestments from coal, with pension fund managers called on to move away from the resource. In September, Notre Dame University said it will stop relying on coal for electricity within five years and cut its carbon footprint by more than half before the end of the next decade.

The Rockefeller family said fossil fuels should stay in the ground for the sake of the environment. Singling out Exxon Mobil, the fund said it was frustrated with allegations the company worked to mislead the public about the impact fossil fuels had on the global climate.

"We would be remiss if we failed to focus on what we believe to be the morally reprehensible conduct on the part of Exxon Mobil," the fund said in a statement.

The New York Attorney General's office issued a subpoena to Exxon last year following a series of reports claiming the company was misleading investors decades ago about the potential impact its sector had on the environment. Accusations made against the oil company are similar to those made against the tobacco industry, in that it downplayed the threats of its products despite research acknowledging the risks.

Exxon said the allegations were inaccurate, deliberately misleading and charged "activists" with exploiting the issue. The company said its research widely mirrored the global understanding of climate issues at the time.

"Appropriate authorities will determine if the company violated any laws, but as a matter of good governance, we cannot be associated with a company exhibiting such apparent contempt for the public interest," the Rockefeller Family Fund said.

Exxon had no comment related to the divestment decision.

ExxonMobil, Chevron told to allow investor climate votes
New York (AFP) March 24, 2016 - US regulators have told ExxonMobil and Chevron to permit shareholders to vote on resolutions requiring assessments of how climate change policies might affect them, according to documents released Thursday.

The two oil giants had sought to persuade regulators to allow them to drop the resolutions, which are backed by environmentalists and employee retirement programs in California and New York.

The resolutions demand an "annual assessment of long term portfolio impacts of public climate change policies," including estimating the value of the companies' assets under global climate policies that could depress demand for oil and gas.

The US Securities and Exchange Commission ruled against the two oil giants, telling ExxonMobil in a March 22 letter that it disagreed with the company's view "that the proposal is so inherently vague or indefinite" that shareholders would be incapable of assessing it.

The SEC decision sets the stage for a shareholder vote on the resolution later this spring. The majority of ExxonMobil shareholders have previously sided with the company in prior climate resolutions.

"Based on the information you have presented, it does not appear that ExxonMobil's public disclosures compare favorably with the guidelines of the proposal," the SEC said. "Accordingly, we do not believe that ExxonMobil may omit the proposal."

The SEC issued a similar letter to Chevron.

New York State Comptroller Thomas DiNapoli, a trustee of the New York State Common Retirement Fund, applauded the SEC decision as "a major victory for investors who are working to address the risks that global warming presents to our portfolios."

"Investors need to know if ExxonMobil is taking necessary steps to prepare for a lower carbon future, particularly now in the wake of the Paris agreement," DiNapoli said.

The SEC also refused to let ExxonMobil and Chevron delete a second climate resolution requiring them to boost capital distributions due to risk to the company's business from "stranded assets" that cannot be developed because of strict emissions limits.

An ExxonMobil spokesman said it will provide the board's position on the resolutions next month.