ExxonMobil CEO Darren Woods speaks on the Asia-Pacific Economic Cooperation (APEC) Leaders’ Week in San Francisco, California, on November 15, 2023.
Andrew Caballero-reynolds | Afp | Getty Images
Exxon Mobil filed a lawsuit in opposition to U.S. and Dutch activist investors in a bid to cease them from submitting climate proposals throughout the oil giant’s annual shareholder assembly.
It marks a primary for the U.S. oil main and is the most recent step in an intensifying battle between firms and environmental campaigners.
The grievance was filed Sunday within the U.S. District Court for the Northern District of Texas in opposition to Massachusetts-based funding agency Arjuna Capital and Follow This, an Amsterdam-based activist investor group.
An Exxon Mobil win within the proceedings might have a chilling impression on future shareholder petitions.
Arjuna Capital and Follow This didn’t instantly reply to a CNBC request for remark.
The Securities and Exchange Commission, the U.S. monetary regulator, has overseen a rising variety of environmental and social shareholder proposals throughout the previous two proxy seasons.
In an emailed assertion, Exxon Mobil mentioned “the breakdown of the shareholder proposal course of, one that enables proponents to advance their agendas via a flood of proposals, doesn’t serve the pursuits of investors.”
The firm added, “We are merely asking the court docket to apply the SEC’s proxy guidelines as written to cease this abuse and get rid of the numerous assets required to handle them.”
The oil main has accused Arjuna Capital and Follow This of being pushed by an “excessive agenda” and claimed they each submit shareholder proposals to undermine the agency’s enterprise.
In its submitting, Exxon Mobil mentioned that it requires reduction from the court docket by March 19, as a result of it should file its proxy assertion by April 11. The Houston-based agency is scheduled to maintain its annual shareholder assembly on May 29.
Scope 3 emissions
Arjuna Capital and Follow This have sought to put stress on oil majors to set up so-called “Scope 3” targets to cut back greenhouse home gasoline emissions produced when burning oil and gasoline.
Scope 3 refer to the emissions produced from throughout an organization’s complete worth chain, and infrequently account for the lion’s share of a agency’s carbon footprint.
Scope 1 emissions in the meantime refer to a agency’s direct greenhouse gasoline emissions, whereas Scope 2 are oblique emissions that stem from the manufacturing of the vitality used on a agency’s behalf.
Exxon Mobil has announced plans to attain web zero by 2050 for Scope 1 and Scope 2 emissions. This goal doesn’t embrace Scope 3 emissions, and shareholders of the corporate overwhelmingly voted to reject requires stronger measures to mitigate climate change final yr.
— CNBC’s Spencer Kimball contributed to this report.