Exxon Mobil Files Lawsuit Against Activist Investors To Block Climate Proposals

(RTTNews) - Oil giant Exxon Mobil (XOM) has filed a complaint in a Texas court seeking to prevent climate activist investors' proposal from going to a vote at annual investor meeting in May.

This marks the first time a major U.S. oil company has gone to court to block environmental activist investors' motions.

The complaint was filed in the U.S. District Court for the Northern District of Texas against Massachusetts-based investment firm Arjuna Capital and Follow This, an Amsterdam-based activist investor group.

The investors have been urging Exxon to step up the pace of reductions in greenhouse gas emissions. Exxon says the US and Dutch investors are driven by an "extreme agenda".

According to a CNBC report, in an emailed statement, Exxon Mobil said, "the breakdown of the shareholder proposal process, one that allows proponents to advance their agendas through a flood of proposals, does not serve the interests of investors."

The company added, "We are simply asking the court to apply the SEC's proxy rules as written to stop this abuse and eliminate the significant resources required to address them."

In its filing, Exxon Mobil said that it requires relief from the court by March 19, because it must file its proxy statement by April 11. The Houston-based firm is scheduled to hold its annual shareholder meeting on May 29.

"With this remarkable step, ExxonMobil clearly wants to prevent shareholders using their rights," Follow This' Mark van Baal said in a statement. "Apparently, the board fears shareholders will vote in favour of emissions reductions targets."