June 18, 2024
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Exxon Mobil Seeks Court Action to Block Climate Proposal

Exxon Mobil Corp has filed a complaint in a Texas court to prevent a climate proposal by activist investors from going to a vote during the company’s shareholder meeting in May.

According to Reuters, this marks the first time Exxon is attempting to exclude a shareholder proposal by filing a complaint in court. The investors, led by U.S. activist investment firm Arjuna Capital and shareholder activist group Follow This, are urging Exxon and other oil majors to adopt more stringent climate targets.

The investors are specifically asking Exxon to set Scope 3 targets to reduce emissions produced by users of its products. Exxon is the only one among the five Western oil majors that does not have such targets.

Exxon claims that the investors are “driven by an extreme agenda” and that their repeated proposals do not serve investors’ interests or promote long-term shareholder value.

The case has been assigned to U.S. District Judge Reed O’Connor, known for ruling in favor of conservative causes. Exxon is seeking relief by March 19, and its proxy statement needs to be filed by April 11 for the annual shareholder meeting scheduled on May 29.

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