Anonymous reader cites NPR reporting. ExxonMobil faces dozens of lawsuits from state and local governments alleging the company lied for decades about its role in climate change and the dangers of burning fossil fuels. But now ExxonMobil is on the offensive with a lawsuit aimed at investors who want the company to cut back on the pollution that raises the planet's temperature. Investors in publicly traded companies like ExxonMobil seek to shape company policy by submitting shareholder proposals to be voted on at annual meetings. ExxonMobil said it is tired of two investor groups it claims are gaming the system by submitting similar proposals year after year to micromanage its business.
The ExxonMobil lawsuit points to growing tensions between companies and activist investors who want them to do more to reduce their impact on climate change and prepare for a hotter world. Interest groups on both sides of the case say this could spark a wave of corporate lawsuits against climate change activists. This comes as global temperatures continue to rise, and business analysts say most companies are not on track to meet the goals they have set to reduce heat-trapping emissions. There is. “Exxon is significantly raising the bar in this area by filing this lawsuit,” said an investor coalition called the Interfaith Center on Corporate Accountability, whose members include defendants in the ExxonMobil case. Josh Zinner, CEO of “Other companies may use this tactic not only to block resolutions, but also to intimidate shareholders from even filing resolutions,” Jinnah said. [climate] The problem is on the table. ”
ExxonMobil said in an email that it is not working with investor group Arjuna Capital and Follow Dis because the U.S. Securities and Exchange Commission (SEC) does not enforce rules governing when investors can resubmit shareholder proposals. He said he would sue. ExxonMobil said the court is the “appropriate place to clarify SEC rules,” adding that the case “is not about climate change.” Charles Crane, vice president of the National Association of Manufacturers, which represents ExxonMobil and other industrial companies, said other companies are also paying attention to the ExxonMobil case. “Given that companies are finding it increasingly difficult to get the SEC to exclude proposals that are clearly politically motivated, the next problem will be if the SEC fails or, more precisely, ,” says Crane. “Can a court win if it's not even tried?” “Arjuna and Follow This's shareholder proposal called on ExxonMobil to more quickly reduce emissions from its operations and supply chain, including the pollution created when customers burn oil and natural gas. '' notes NPR. “This indirect pollution, known as Scope 3 emissions, accounts for 90% of ExxonMobil's carbon emissions.”
“ExxonMobil says it is working to reduce emissions from its operations, but activist investors like Arjuna and Follow This are pushing the company out of the oil and gas business quickly with new climate policies. The idea that it could be forced out is “naive and contrary to the vast interests'' of ExxonMobil's majority shareholders,'' the company said in a Texas court filing. The company added that while shareholders have the right to submit proposals, there is no “unrestricted right to submit proposals to do anything.”
ExxonMobil said of Arjuna and Follow This: “Their intent is to advance their own agenda rather than create long-term value for shareholders.”