Exxon sues to remove shareholder vote on climate targets

Exxon is suing a group of activist investors in an attempt to remove a vote on climate targets from the agenda at its annual shareholder meeting. Arjuna Capital, an investment adviser, and Follow This, an activist group known for campaigns at oil majors, have repeatedly called on Exxon to “accelerate” plans to reduce emissions – including from customers using its products. Exxon’s decision to go to court over the proposal is a first for a US oil major, and marks a major escalation in the battle between companies and activists. It claims they want to “diminish the company’s existing business” and are aided by a proxy voting system that is “ripe for abuse”. Exxon is also in effect taking a shot at the Securities and Exchange Commission, the US financial regulator, for allowing the number of shareholder petitions on climate to increase in recent years. The lawsuit will be closely watched. If Exxon wins, it could have a chilling effect on investors seeking to challenge companies on their targets.