ExxonMobil, a leading oil company, has initiated legal proceedings against climate activist investors Follow This and Arjuna Capital. ExxonMobil’s lawsuit aims to block a vote on their proposal, which urges the company to expedite emissions reduction. This vote is scheduled for the upcoming annual investor meeting. Exxon contends that these American and Dutch investors are driven by an “extreme agenda.”
This legal move, considered unusual, marks Exxon as the first company to take such action. Reports from the BBC indicate that a favourable outcome for the Texas-based firm could significantly impact the landscape of future shareholder petitions.
ExxonMobil’s Legal Battle Over Emission Reduction Targets
Publicly traded companies, including ExxonMobil, typically discuss individual proposals with the Securities and Exchange Commission (SEC). However, critics argue that the advice from the US financial regulator can change based on the current political administration. The SEC reports a substantial increase in environmental activist proposals in recent years. Activists from Follow This and Arjuna Capital are advocating for Exxon to establish Scope 3 targets, focusing on reducing emissions produced by its oil and gas users.
While Exxon has set a goal to achieve net-zero emissions by 2050 for Scope 1 and Scope 2 emissions—comprising pollution from its manufacturing processes and energy consumption—it stands out among major Western oil companies for lacking Scope 3 targets.
Exxon is now seeking intervention from a Texas district court to exclude the Scope 3 proposal from its proxy statement. The company has requested a decision before March 19, ahead of its annual shareholder meeting on March 29. These legal proceedings highlight the intensifying debates and pressures major corporations face as they navigate environmental concerns and investor demands for sustainable practices.
The world continues to face the largest global food crisis in recent history, which slows down progress towards achieving sustainable development goals globally.
According to the World Food Program (WFP) report, the new conflicts, climate crises, and economic shocks excaberaye the food crisis. The data presents a concerning picture:
- 738 million people affected by chronic hunger in 2022, an almost 17% increase from 2019.
- Acute insecurity persisted in 2023 across 79 countries where the WFP operates.