Exxon Takes Legal Action, to Block Investor , Climate Petition.
BBC reports that ExxonMobil has filed a lawsuit against climate activist investors aimed at preventing their climate proposal from being voted on at an upcoming investor meeting.
BBC reports that ExxonMobil has filed a lawsuit against climate activist investors aimed at preventing their climate proposal from being voted on at an upcoming investor meeting.
Exxon's complaint targets Follow This and Arjuna Capital, which have urged the company to speed up efforts to reduce greenhouse gas emissions.
According to Exxon, the two investor groups are driven by an "extreme agenda.".
BBC points out that companies rarely take legal action to block shareholder's motions, and this is the first time Exxon has attempted to do so.
The outcome of the case could have a significant impact on shareholders' ability to petition in the future.
Follow This and Arjuna Capital petitioned Exxon to set Scope-3 targets aimed at reducing emissions produced by its customers.
Exxon's Scope 1 and Scope 2 goals are aimed at achieving net zero emission by 2050, but is the only oil major to not have a Scope 3 target.
According to Exxon, the petition violates SEC rules for investor petitions, stressing that , "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.".
Exxon has asked the U.S. district court in Texas to exclude the Scope 3 petition, while looking for an official ruling before the company's annual shareholder meeting on March 29.
Exxon has asked the U.S. district court in Texas to exclude the Scope 3 petition, while looking for an official ruling before the company's annual shareholder meeting on March 29
