Exxon Sues Investors to Silence Climate Proposal

Published on:
by KnowESG,

Exxon Mobil

KnowESG_Exxon Sues Investors to Silence Climate Proposal
Image courtesy of Reuters

Oil giant ExxonMobil is taking climate activists Follow This and Arjuna Capital to court to stop their proposal on climate action from being voted on at its yearly investor meeting.

Exxon says these investors have an "extreme agenda." It is rare for companies to go to court over shareholder proposals, and it is the first time Exxon is doing so.

If Exxon wins, it could make it harder for shareholders to bring up similar issues in the future. Normally, companies discuss these proposals with the Securities and Exchange Commission (SEC), but critics argue the SEC's advice changes with different administrations.

Follow This and Arjuna Capital want Exxon to set targets to reduce emissions from the users of its oil and gas (Scope 3 targets).

Currently, Exxon aims for net-zero emissions by 2050 for its production processes and energy consumption (Scope 1 and Scope 2), but it is the only one of the five major Western oil companies without Scope 3 targets.

Exxon says the activists' proposal breaks SEC rules for investor petitions. The company argues that the current process, letting activists push their ideas through many proposals, does not serve investors' interests.

Exxon has asked a Texas district court to remove the Scope 3 proposal from its proxy statement, and it wants a decision by March 19 before its annual shareholder meeting on March 29.

For more regulatory news

Discover an extensive network of ESG providers here

To view and compare company ESG Ratings and Sustainability Reports, visit our Company ESG Profiles page.

Source: BBC

Share:
esg
esg
esg
esg

Regulators Headlines

Italy Seeks Feedback on New Sustainability Reporting

Italy Seeks Feedback on New Sustainability Reporting

BIBA Commits to Sustainable Future

BIBA Commits to Sustainable Future

ESG Gains Momentum Among British Manufacturers

CFA Institute: China's Green Dream Needs Skilled Hands

ULEZ Expansion Ads Off Air After False Green Claims

ESMA to Gain Authority in Green Ratings

Remilk's Sustainable Vegan Milk Debuts in Canada

ECB's New Climate Plan Signals Greener Policy

IESBA Seeks Feedback: Sustainable Ethics Consultation

Greenhushing Prevailing Across Sectors, Says Study

More from Exxon Mobil
What Is Anti-ESG?
What Is Anti-ESG?
ExxonMobil's Low-Carbon Hydrogen Project Gets FEED
ExxonMobil's Low-Carbon Hydrogen Project Gets FEED
PCG and ExxonMobil Will Collaborate on Plastic Recycling in Malaysia
PCG and ExxonMobil Will Collaborate on Plastic Recycling in Malaysia
First Sustainable Aviation Fuel Cargo from Exxon Delivered to Changi Airport in Singapore
First Sustainable Aviation Fuel Cargo from Exxon Delivered to Changi Airport in Singapore