Exxon Files Lawsuit Against Climate-activist Investors

(RTTNews) - Exxon Mobil Corp. (XOM) has initiated a legal action against investor groups Arjuna Capital and Follow This.

The lawsuit mainly aims to address perceived shortcomings in the enforcement of shareholder proposal resubmission rules by the SEC, that made it harder for companies to turn away some resolutions.

The contested proposal called for Exxon to reduce climate pollution both from its operations and the emissions generated by customers using its products. This includes Scope 3 emissions, which constitute a significant portion of ExxonMobil's carbon footprint.

Despite previous similar proposals from the investor groups receiving limited support, Exxon is resolute in its stance to safeguard investors from what it perceives as repetitive and intrusive proposals.

Following the legal action taken by ExxonMobil in Texas federal court, Arjuna and Follow This retracted the proposal and committed to not resubmitting it. However, ExxonMobil remains steadfast in its pursuit.

Mark van Baal of Follow This expressed concern that ExxonMobil's actions are stifling shareholder participation in crucial climate-related decisions.

ExxonMobil maintains that while shareholders have the right to propose initiatives, these proposals should align with creating long-term shareholder value. The company asserts that proposals from Arjuna and Follow This are driven by specific agendas rather than the broader interests of shareholders.